Luxembourg faces minimal direct impact from US trade measures, but Prime Minister Luc Frieden signalled continued vigilance on European tax proposals, including a proposed tobacco levy.

Luxembourg exports very little directly to the United States, meaning that much of the country’s economy would remain largely unaffected by the new tax regime, according to Prime Minister Luc Frieden. In conversation with RTL, the PM also addressed the EU Commission’s budget plans, which have drawn criticism from the Alternative Democratic Reform Party (ADR) for including a proposed tobacco tax.

Luxembourg would not be a strong supporter of new European taxes, said Frieden, and several other member states would share this hesitation. According to Frieden, discussions on these measures are expected to continue at least until the end of next year.

In the meantime, steps will be taken to ensure that Luxembourg does not face disproportionately greater financial burdens from any new taxes compared with other countries.