The United States threatened the European Union with trade retaliation due to a European preference planned in the community budget. The threat arises in the context of trade tensions between the two economic powers.
Washington considered that the competitiveness fund included in the European budget would harm the trade partnership with the United States. The American government argues that the measures planned in the fund explicitly favor European products.
The competitiveness fund contains provisions that favor products with the "made in Europe" designation, which according to the United States constitutes a form of trade protectionism. This situation could lead to an escalation of retaliatory measures by Washington.
