Core Viewpoint - The EU is considering retaliatory measures in response to U.S. President Trump's proposed tariffs on several EU nations, which could significantly impact European businesses [1][6]. Group 1: EU's Response to U.S. Tariffs - The EU has frozen its trade deal with the U.S. following Trump's announcement of 10% tariffs on six EU nations, the U.K., and Norway starting February 1 [1]. - Business leaders are urging the EU to review all trade defense instruments, including the Anti-Coercion Instrument (ACI), which should be considered a last resort [2]. - There are calls for Europe to act decisively to protect its interests and not to be coerced by the U.S. [4]. Group 2: Economic Impact of Proposed Tariffs - If the tariffs are implemented, U.K. businesses could face costs of £6 billion, potentially rising to £15 billion (approximately $20 billion) by June if tariffs increase to 25% [6]. - The U.K. has significant bilateral trade with the U.S., valued at £300 billion, and substantial investments on both sides, indicating a high level of economic interdependence [7]. - Deutsche Bank analysts noted that European countries' substantial holdings in U.S. assets could provide leverage in counter-measures against new tariffs [8]. Group 3: Industry-Specific Concerns - The European mechanical and plant engineering industry is particularly vulnerable, facing 50% tariffs on steel and aluminum, which could affect over half of all exported machinery [9]. - High bureaucratic costs are also cited as a barrier to transactions, compounding the impact of tariffs on the industry [9].