The Commission’s approach is based on three pillars: negotiations, countermeasures, and trade diversification. It hopes to resolve the dispute through negotiations, leveraging the strength of the EU’s internal market. If talks fail, countermeasures will follow.
"Following the U.S. administration’s decision to impose broad tariffs on goods from the European Union, the EU will respond calmly, carefully, and gradually—and above all, united—as we calibrate our response. We won’t shoot from the hip; we want to give negotiations every chance to succeed for a fair agreement that benefits both sides," said EU Trade Commissioner Maroš Šefčovič.
The Commission is not revealing specific potential measures and emphasizes that "everything is on the table."
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“All options are on the table, and we don’t want to speculate about what actions we’ll take,” said a senior Commission official who wished to remain anonymous.
Any retaliatory measures will aim to hurt the U.S. as much as possible while causing minimal harm to the EU. That means targeting American products for which alternatives exist in Europe.
“We won't impose tariffs on goods we don't produce. Meanwhile, the Americans have imposed tariffs on items like coffee and bananas, which they don’t even grow,” said the unnamed official. He added that Europe has alternatives for products like Harley-Davidson motorcycles, Levi’s jeans, and soybeans.
According to the Commission’s initial estimates, the reciprocal 20% tariffs would impact about €290 billion of European exports to the U.S., potentially generating €58 billion in revenue for the U.S. For the €66 billion worth of EU car and car part exports, 25% tariffs would bring in €16.5 billion, and tariffs on €26 billion in aluminium and steel exports would yield €6.5 billion.
In total, the new U.S. tariffs target around €380 billion worth of goods—about 70% of total EU exports to the United States. This would raise U.S. customs revenue to €81 billion annually, up from the current €7 billion. However, this figure assumes trade volumes remain unchanged, which is unlikely due to the expected drop in trade caused by the tariffs.
The Commission holds exclusive authority over foreign trade, meaning member states cannot negotiate directly with the Trump administration. It must also ensure that the burden of countermeasures is fairly distributed among member states, as not all are equally reliant on trade with the U.S. The most exposed are Ireland, Germany, and Italy.
Thus, maintaining EU unity will be a major challenge as some member states may push to exclude certain American products from the tariff list to avoid retaliation against their own key exports. For example, it is rumored that France wants to remove American bourbon from the list, as Trump has threatened 200% tariffs on French wine.
The Commission acknowledges it must enter negotiations with the U.S. from a position of strength, reaffirming that all options remain open, including taxing U.S. digital services from tech giants like Apple, Amazon, Meta, and financial services such as PayPal.
The Commission also holds a powerful tool often referred to as the "nuclear option": the Anti-Coercion Instrument (ACI). This mechanism allows the EU to impose countermeasures on countries using economic coercion or trade manipulation to influence EU decisions. ACI measures may include tariffs, service trade restrictions, limitations on IP-related trade rights, or curbs on foreign direct investment and public procurement. Though originally designed to deter pressure from China, it has never been used.
A blast of cold northern air swept across Dalmatia today, bringing an unusual bout of sleet to the coastal town of Tučepi. A video circulating on social media shows sleet being driven sideways by a biting north wind, whistling through the tress - a rare sight for this time of year.
Temperatures across the wider Dubrovnik region dropped sharply overnight, with the current temperature in Dubrovnik hovering around 10°C. The strong north wind has introduced a noticeable wind chill, making conditions feel even colder than the thermometer suggests.
The good news? This sudden cold snap is expected to be short-lived. Forecasts predict a return to warmer and more stable weather starting tomorrow, much to the relief of locals and early-season visitors alike.
Tučepi selo sada. Vidio sam da zec traži mater. Snježna mečava uz jake udare bure.
Posted by Zlatko Lalic on Sunday 6 April 2025
Polish Journalists and LOT Airlines Promote New Warsaw–Dubrovnik Route as Polish Market Grows Stronger
A delegation of Polish journalists, influencers, travel bloggers, and representatives from LOT Polish Airlines touched down in Dubrovnik this week as part of a strategic promotional visit to spotlight the new direct flight between Warsaw and Dubrovnik. Organized in collaboration with the Croatian National Tourist Board (CNTB), Dubrovnik-Neretva County Tourist Board, and Dubrovnik Tourist Board, the visit underscores Poland’s rising importance as a key tourism market for Croatia.
Poland currently ranks among the top five most significant source markets for Croatian tourism. In 2024 alone, Polish travelers made 1.2 million visits and recorded 7.1 million overnight stays in Croatia—a year-on-year increase of 8% in arrivals and 6% in overnight stays.
"Polish visitors have consistently shown strong affection for our country, appreciating not only the coast and natural beauty but also Croatia’s rich gastronomy and cultural heritage,” said Kristjan Staničić, Director of the Croatian National Tourist Board. “This new Warsaw–Dubrovnik route with LOT Airlines is a major step in improving year-round connectivity and strengthening our ties even further.”
LOT Polish Airlines, which flew nearly 120,000 passengers between the two countries in 2024, confirmed Croatia’s growing significance in its route network. “Dubrovnik, Split, and Zagreb continue to attract high demand from Polish travelers,” said Robert Ludera, Director of Flight Network Planning at LOT. “Our goal is to ensure reliable and high-quality links between Central and Southern Europe, and this route is part of that strategy.”
The 30-member delegation, led by Małgorzata Kowalska, Director of the CNTB office in Poland, was treated to a curated itinerary across Dubrovnik-Neretva County. Highlights included visits to the iconic Dubrovnik city walls, oyster tasting in Ston, a tour of Cavtat and the Konavle Heritage Museum, and a wine tasting at Crvik Winery.
Julijo Srgota, Director of the Dubrovnik-Neretva County Tourist Board, emphasized the importance of the Polish market to the region: “Poles feel right at home here, particularly in Pelješac, Korčula, and Konavle. They’re not just looking for sun and sea—they’re seeking active holidays and authentic eno-gastronomic experiences.”
He also noted the importance of LOT’s new winter route, which now connects Warsaw and Dubrovnik twice a week. “This winter link is a game-changer for our year-round tourism ambitions,” Srgota added.
Polish tourists have so far in 2025 recorded the most overnight stays in Kvarner and Istria, with strong interest also in Zagreb, Rovinj, Opatija, Split, Zadar, and Dubrovnik.
As Croatia heads into the busy summer season, LOT’s Warsaw–Dubrovnik route is poised to become a crucial connector for one of the country’s most engaged tourism markets.
For more than half a century, the U.S. dollar has firmly held its position as the world’s primary reserve currency. However, in recent times, the question is being asked more loudly than ever – is that dominance under threat, and could another currency take over?
The dollar is crucial to the global economy. Central banks hold it as their main reserve currency, most international trade is denominated in it, and it is used in nearly all major international financial institutions. Around 60 percent of global foreign currency reserves are still tied to the dollar, securing its status as the most trusted currency. This privileged position allows the United States to borrow money cheaply, exert greater control over global financial flows, and use the dollar as a tool of foreign policy leverage — through sanctions, for instance — as noted in IMF data.
Still, global circumstances are changing. Financial sanctions against Russia, trade wars between the U.S. and China, and growing rivalries among major powers have prompted some countries to look for alternatives to the dollar-based system. The process, known as "de-dollarization," is increasingly part of political and financial discussions — particularly in countries like China, Russia, Iran, and Brazil. These nations are signing trade agreements in local currencies, reducing their dollar exposure in reserves, and developing alternative financial infrastructures such as China’s CIPS payment system.
Is the Reign of the Dollar Coming to an End?
Among the most commonly mentioned potential replacements for the dollar are the euro and the Chinese yuan. The euro, as the currency of the European Union, benefits from institutional stability and is used in a significant share of global reserves. However, its limited role in energy trading and internal political divisions within the EU restrict its reach. On the other hand, China is actively promoting the yuan in international trade and finance, but capital controls and concerns about financial transparency still prevent broader adoption of the currency.
In this context, some hope also lies in technological alternatives — such as cryptocurrencies and central bank digital currencies (CBDCs). While cryptocurrencies offer a technological revolution in value transfer, their volatility and legal uncertainty prevent them from being serious contenders as national reserve currencies.
If the dollar were to lose its status as the global reserve currency in the future, the consequences would be deep and far-reaching. For the world, it could mean greater volatility in exchange rates, more complex transactions, and potentially higher transaction costs as the global system fragments across multiple currencies. Countries holding large dollar reserves would have to revise their monetary strategies, and international institutions like the IMF and World Bank would face the need to redefine their operational models.
