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2025-04-21

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The United States cuts $10 trillion from its budget! The European Union plans to retaliate, with "this industry" becoming the focal point of various countries' countermeasures.

The United States cuts $10 trillion from its budget! The European Union plans to retaliate, with
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U.S. President Trump announced the imposition of high tariffs on imports from 185 countries, reigniting the flames of trade war. Although the United States has had a long-standing trade deficit in goods, it holds an advantage in services trade, with annual revenues close to $300 billion. The European Union has devised countermeasures, retaliating against the U.S. service industry by potentially raising the import threshold for services and rewriting intellectual property rules. This action would severely impact U.S. service exports and significantly affect the technology and finance sectors.

The United States has a significant advantage in the field of service trade, which may become the main target of retaliation from various countries.

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Recently, the President of the United States announced high tariffs on imported goods from 185 countries, escalating the trade war once again. Although the U.S. has long been in a trade deficit regarding goods, it shows a clear advantage in service trade, with annual revenue approaching 300 billion dollars (approximately 9.9 trillion New Taiwan dollars).

EU officials have stated that the European Union has proposed countermeasures against the U.S. service industry. Reports indicate that the U.S., as the world's largest service exporter, is involved in high-value areas such as finance, tourism, engineering, healthcare, and cloud technology, many of which are exported in digital form, including spending by foreign travelers in the U.S. and companies purchasing American cloud services. These digital services continuously bring considerable surpluses to the U.S.

It is expected that in 2024, the U.S. surplus in service trade will reach 300 billion dollars; some economists point out that the trade surplus from digital content and services alone could reach 600 billion dollars (approximately 19.9 trillion New Taiwan dollars), nearly equivalent to France's total annual exports.

The European director of Eurasia Group stated, "The real leverage for Europe lies in the service industry." He mentioned that the high tariff policies of the U.S. have triggered a chain reaction, and several European countries are planning to shift their countermeasures towards service trade. The EU is also preparing to activate a "Anti-Coercion Tool," which will grant member states extensive means for retaliation, including raising import thresholds for services, restricting market access, and rewriting intellectual property rules to directly confront U.S. tariff policies.

EU officials pointed out that in recent years, the EU has strengthened regulations on tech giants, including companies like Google, Apple, and Meta, all of which have been forced to adjust their operational policies in the European market. Once the EU takes action, it will have a significant impact on the most profitable industries in the U.S., not only affecting service exports but also directly influencing Silicon Valley tech companies and Wall Street financial institutions, putting immense economic pressure on the United States.