EU trade chief says bloc will respond swiftly to US tariffs

 

The European Union will respond "firmly and swiftly" to protect its interests if Washington imposes tariffs on the bloc's goods, its trade chief said Wednesday, rejecting President Donald Trump's claim that US-EU trade ties are unfair.

"It is the very definition of a win-win partnership, and there is nothing unfair about it," Maros Sefcovic added in Washington, as Europe girds for heightened tariff tensions with the United States.

But he signalled the EU's willingness for dealmaking, such as the possibility of reducing or eliminating tariffs on autos and other products.

"If we are going to talk about lowering the tariffs, even eliminating the tariffs, let's say for industrial products, this would be something which we are ready to discuss," he told an audience at the American Enterprise Institute.

"We are ready to go for it," he said ahead of talks with his US counterparts.

He was due to meet with partners including US Commerce Secretary Howard Lutnick and US Trade Representative nominee Jamieson Greer.

He added that he was keen on discussing US concerns and working towards a "solid package."

'No justification'

Sefcovic said the EU sees "no justification for sudden, unilateral tariff increases" by the United States, adding that businesses rely on economic stability and predictability.

If the United States imposed tariffs on EU products, this would create unnecessary barriers to exports, businesses and workers on both sides of the Atlantic, said Sefcovic, who is European Commissioner for Trade and Economic Security.

"To protect European interests, we will have no choice but to respond firmly and swiftly," he added.

He stressed that the bloc will do its best to avoid such an outcome, adding that both parties have to be responsible in dealing with each other.

Sefcovic noted that the EU-US economic relationship represents nearly 30 per cent of global trade.

He added that the EU is "one of the most open economies in the world, with over 70 per cent of imports entering at zero-tariff."

Sefcovic's trip comes after Trump has threatened sweeping "reciprocal tariffs" on allies and adversaries, aiming at the EU for being "absolutely brutal" in trade ties with the United States.

The levies would be tailored to each US trading partner and consider the tariffs they impose on American goods, alongside taxes seen as "discriminatory," such as value-added taxes, according to the White House.

While Washington has taken aim at the EU's higher tariff rate on autos, Sefcovic added that US tariffs are higher in sectors like agricultural products.

Germany's car lobby on Wednesday warned that Trump's threatened tariffs would hike costs for US drivers after the president signalled he could raise levies on imports of cars, semiconductors and pharmaceuticals.

Already, Trump has slapped an additional tariff on Chinese goods and unveiled sweeping duties on imports of steel and aluminium, due to take effect in March.