EU Warns US It Will Retaliate If Trump Imposes Tariffs on Goods

(Bloomberg) -- The European Union has said it will “respond firmly” if the US imposes tariffs on the bloc in the latest sign of discontent with President Donald Trump’s trade tactics that are reverberating globally.

On Friday, Trump said that he “absolutely” will impose tariffs on the EU. The European Commission and member states will discuss the possibility during a trade ministerial in Warsaw on Tuesday.

A spokesperson for the commission said that the 27-member bloc was not aware at this stage of any additional tariffs being imposed on EU products, highlighting that the trade and investment relationship with the US was the biggest in the world. The use of tariffs was “hurtful on all sides,” the spokesman said, and the EU regretted Trump’s decision to impose them on Canada, Mexico and China.

“The EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods,” the spokesperson said. “There is a lot at stake.”

Trump’s 25% levy on goods from Canada and Mexico and 10% duties on products from China are due to take effect Tuesday and will affect products ranging from tequila to cars. Both Canada and Mexico have said they will hit back, with Prime Minister Justin Trudeau saying Ottawa will impose 25% tariffs against C$155 billion ($106 billion) of US goods. Beijing also vowed corresponding counter-measures to be taken in response.

Tensions between the EU and the new Trump administration are already elevated after the president’s proposal to buy Greenland, which Denmark has insisted is not for sale. Mette Frederiksen, the country’s prime minister, has been drumming up support from EU allies in a bid to stand up to Trump.

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