EU: We will retaliate to protection with tariffs on US imports

The European Union has responded to Donald Trump’s threat of a trade war by warning that it will retaliate with tariffs on a range of US imports including peanut butter, cranberries and orange juice.

Reacting to the threat from the US president of 25% tariffs on steel imports and 10% on aluminium, European commissioner for trade Cecilia Malmström said on Wednesday the EU was finalising its own list of American exports that could face sanctions, including steel, industrial and agricultural products.

However, Malmström also said the EU still hoped to avoid a full blown trade war, despite the escalating rhetoric between the US and its main global trading partners in recent days.

“A trade war has no winners and if it does not happen for the better, then we can work with our American friends and other allies on the core issue of this problem, overcapacity,” she told reporters at a press conference in Brussels. “But if it does happen we will have to take measures to protect European jobs.”

Malmström, a veteran of trade talks with the US, said she was eager to avoid an escalation in the war of words between Washington and Brussels over tariffs, saying: “We do not want this to go out of proportion.”

But she said the EU needs to have “rebalancing” measures ready, to safeguard the EU economy and protect jobs. “We cannot just stay silent when such a major measure could be taken to the EU economy,” she said.

She said a provisional list of US products that could face EU tariffs is being drawn up and will be published after consultation with member states.

“Certain types of bourbon are on the list, as are other items such peanut butter, cranberries, orange juice,” she added. “Very soon that list will be public, so you will be able to plan your whisky drinking.”

Source: theguardian