European commerce ministers on Monday expressed alarm relating to U.S. President Donald Trump’s risk to slap a 30% tariff on items imported from the EU bloc. Nevertheless, they determined to carry off on retaliatory tariff countermeasures that might affect the U.S. tech sector and, by extension, streaming providers similar to Netflix, on which the EU might place a digital service tax if a tariff warfare ensues.

The ministers met Monday in Brussels following Trump’s shock announcement over the weekend of the hefty tariffs towards the EU, which is America’s greatest enterprise accomplice.

The “countermeasures” by the EU, which negotiates commerce offers on behalf of its 27 member international locations, are being delayed till Aug. 1 in hopes of reaching a commerce take care of the Trump administration.

“I’m completely 100% positive {that a} negotiated resolution is significantly better than the stress which we would have after the first of August,” Maroš Šefčovič, the EU’s commerce consultant in its talks with the U.S., mentioned in line with a number of studies. However he added that “we have to be ready for all outcomes.”

Europe’s most important exports to the U.S. are prescription drugs, automobiles, plane, chemical compounds, medical devices and wine and spirits. It’s nonetheless unclear how U.S. tariffs would apply to movie. Although in Might, Trump introduced a 100% tariff on films produced outdoors the nation, that risk appears to have fallen to the wayside.

“I don’t have a crystal ball,” Czech producer Jan Kallista mentioned final week throughout a panel on the Karlovy Fluctuate Movie Competition when requested in regards to the Trump tariff impact throughout the European manufacturing scene. “We had been listening to [about] this in Cannes however time has now moved, and we’ve got seen how [Trump] pushes for tariffs after which takes it again. I don’t know what the outcomes could be, however he must take again a few of his proclamations.”

As for EU retaliations, the European Fee, making a strategic U-turn earlier this month to ease tensions, dropped plans to slap a so-called “digital tax” on corporations that will have included Meta, Google and Netflix. However analysts say this tax could possibly be revived if a tariff warfare breaks out.