EU warns of retaliation against Trump’s metal tariffs

The European Union is prepared to retaliate against US President Donald Trump’s steel and aluminum tariffs but still seeks talks with the United States over the decision to settle the dispute, a senior EU official says.

“We are prepared and will be prepared if need be to use rebalancing measures,” European Commission Vice President Jyrki Katainen told a press conference in Brussels on Friday.

He added that the 28-nation bloc stands ready to take Washington to the World Trade Organization (WTO) if necessary but expressed hope it would not be “forced” to use the rebalancing measures.

President Trump fueled concerns of a potential trade war on Thursday when he officially announced steep tariffs on imported steel and aluminum, but exempted Canada and Mexico.

Defying his own party and delivering on a campaign promise to fight unfair practices by America’s trading partners, Trump signed paperwork enacting tariffs of 25 percent on steel and 10 percent on aluminum during a ceremony at the White House. They are due to take effect in the next two weeks.

Katainen further called for “clarity” on how the tariffs will be implemented as the EU believes that it should be excluded because its industry was not a security threat to the United States.

“We need a dialogue with the US. It’s clear, we need clarity to the situation,” the EU executive said.

“It is not crystal clear how a potential exclusion process will function. We are also looking at the option to be excluded,” he added.

Katainen expressed hope during US Trade Representative Robert Lighthizer scheduled visit to Brussels on Saturday for long-planned talks, further clarification would be made.

Speaking at a panel discussion on Friday in Brussels, the EU trade chief, Cecilia Malmstrom, criticized Trump’s “wrong” approach, hoping to get confirmation from the US that the bloc will be excluded from the new tariffs.

“We had been in talks with our American friends for quite some time to explain to them that whereas we share the concerns over overcapacity in the steel sector, this is not the right way to deal with it,” Malmstrom said.

The European Union on Wednesday expressed its preparedness to retaliate against Trump’s decision with counter-measures against iconic US products like Harley Davidson motorcycles, Levi’s jeans and bourbon.

Malmstroem said the EU is circulating among member states a list of US goods to target with tariffs so that it can respond as quickly as possible. She did not say what level of tariffs the EU would set, leaving it unclear what the economic impact would be.

Germany supports EU’s retaliation against US metal tariffs

German government spokesman Georg Streiter also on Friday threw his country’s weight behind EU’s plans to respond if Trump presses ahead with the tariffs decision, calling for multilateral talks to address overcapacity in the steel sector.

“The European Union has decided to respond clearly to the US measures and as the federal government we support this position,” Streiter said at a regular news conference.

He emphasized that the 28-nation bloc would later decide on the “exact nature” of its steps “after a close analysis of the American measures.”

Germany’s Economy Minister Brigitte Zypries also said on Friday that the US president is “offending close” allies and risking a global trade war with his controversial tariffs on steel and aluminum.

“This is protectionism which offends close partners like the EU and Germany and which limits free trade,” she said in a statement.

“We will stand firmly by the side of our companies and their workers and will now work closely with the European Commission to answer coolly and clearly” Trump’s imposition of tariffs, she added.

Meanwhile, Germany’s transatlantic coordinator, Juergen Hardt, urged the Trump’s administration to exempt its European allies from punitive tariffs, Reuters reported.

Hardt called Trump’s decision a “blow to transatlantic economic ties” and criticized the US president for seeking answers to his country’s economic problems overseas.