To combat Trump’s tariff on goods, country can return to American services

President Trump says he is angry with the fact that the United States imports more goods than sending the rest of the world. However, he rarely mentions, however, it is that when it comes to services, the tables are replaced.

Services sector – Finance, Travel, Engineering and Medical Industries and more – create bulk of the American economy. The exports of these services brought more than $ 1 trillion to the United States last year.

But this dominance also dominates other countries in negotiations – including the ability to hurt the US economy as they retaliate against Mr. Trump’s tariff on goods.

For example, the European Union, can use devices designed to restrict services in the block as a Kudgel.

“The real advantage of the Europeans finally has services,” said Mujtaba Rahman, “said the managing director of Europe in a political research firm Eurasia Group. “It will grow before de-suscule.”

The United States is the largest exporter of services in the world, and a large part of those services, from financial services to cloud computing, is distributed digitally. The country launched a trade surplus in the services of about $ 300 billion last year.

Every time an European tourist lives in an American hotel, for example, the money spent is counted in the service export basket. And every time a person in Canada or Japan or Mexico pays to listen to music or watch films and television shows made in the United States, they are adding the US surplus to the business of services.

According to the US Census Bureau, Canada, China, Japan, Mexico and most parts of Europe are targeting several countries in the United States with the United States.

A managing director of the Global Investment Research at Goldman Sachs, Philippo Taddei wrote in a research note about potential European reactions, “The European Union is now equipped with policy equipment to expand the range of retaliation against American tariffs to target the imports of American services.”

Of course known as the most extreme option Anti-inhibitionThe first proposed in 2021, the equipment is largely unused, but it allows the European Union to hit a business partner with a “wide range of potential counters”.

Such measures may include tariffs, ban on business in services and limitations on aspects related to trade of intellectual property rights. This can affect American technical giants such as Google. Many European diplomats said that the use of the equipment is a different possibility, should business war increase.

While the potential restrictions aimed at the purpose of services will be a new trade war response, Brussels have a history of punishing the American technical industry for other reasons. For more than a decade, the European Union has gone after the largest companies for the Silicon Valley’s anticomatural business practices, weak data privacy security and Lax content moderation policies.

Europe’s aggressive inspection has made remarkable product changes because the European Union, the house of about 450 million people, is a major market. Google has changed how to display the search results, Apple has changed its app store, and Meta has made adjustments on Instagram and Facebook due to the rules of the European Union.

Taking aim in the technical industry will lead to a quarrel with the Trump administration on European technical regulation. Even before the tariff standoff, senior officials, including the Vice President JD Vance, have criticized the European Union what they see as excessive regulation of American technology companies.

As this week, the European Union was expected to declare a new fine against Apple and Meta to violate the Digital Markets Act, a law passed in 2022 The purpose was easy for small companies to compete against technical giants against technical giants. Meta and X are investigating under another new law called the X Digital Services Act, which requires companies to do more for their platforms for illegal materials.

On the other hand, Britain can use its rules on importing service as a carrot instead of a stick.

For weeks, the British authorities have tried to assure the public that it was in a strong position to interact with the Trump administration to avoid tariffs, repeatedly pointing to a relatively balanced goods trade between the two countries. (There is a surplus in Britain when it comes to services.)

Nevertheless, a point in a throat for the Trump administration officials is doing a Digital service of Britain, which they say that the American is incorrectly damaging the technical giants. The tax was introduced in 2020 as a 2 percent levy on the search engine, social media services and online marketplace revenue. The British Treasury is expected to grow more than $ 1 billion in this financial year.

British officials said that changes in it are part of the negotiations with the Trump administration. Last month, Rechhel Reeves, The Chancellor of the Excreater said, “We have received to get balance.”

According to researchers at Chautham House, a research institute, Britain has sought to place itself in a “Goldilox Zone” between the United States and the European Union, which is a research institute, maintain good relations with both and regulate some regulation.

If scrapping digital services tax “is a dear deal for the UK that is the worst from the American tariff, it can prove to be a masterstroke,” researchers, Alex Crossodomski and Olivia O’Sullyan have written. “But this is highly uncertain – the application of the President’s tariff has been in continuous flow.”

It was more likely that Britain would eventually choose a close loyalty for the United States or the European Union, he said.