The EU is facing calls to target US tech firms or banks in future retaliation, a potent but politically explosive target, as the US runs a €109bn (£94bn) trade surplus with the EU in service industries
Fucking precisely! Target big tech and banks, this is where it hurts them.
I can definitely see the issues sane, adult and usually well educated EU officials encountered when they were trying to explain VAT to a bunch of cretins Trump employed.
But I don't see where that has any implications for international trade
Because there aren't any, it is only the perception.
If the final amount of vat is £20 for something which costs £100, for goods manufactured in the UK, these £20 have been collected "on the way" with the final retailer taking £20 from the end seller but paying let's say £15 to the wholesaler so only paying the taxman £5 (and wholesaler another £5 and manufacturer another £10 etc).
If however something has been imported by the retailer and the final vat is £20, the retailer will pay the entire £20 to the taxman. It is still the same £20 and makes no difference at all. But perception of Trump's halfwits may be different.
It is for dogs