EU stands firm as tariff threats loom

BRUSSELS — The European Union insisted on Sunday it would retaliate "firmly" if US President Donald Trump imposed tariffs, as Brussels decried his sweeping measures against Canada, Mexico and China.

Brussels has until now said it hopes to avoid a trade conflict with Trump through negotiation.

However, Trump doubled down on Friday by saying he "absolutely" planned to target the EU in the future, after first slapping levies on the US' three largest trading partners.

"The European Union regrets the US decision to impose tariffs on Canada, Mexico and China," said a spokesman for the European Commission."Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides."

The EU "would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods", the spokesman added. "At this time, we are not aware of any additional tariffs being imposed on EU products."

The 27-nation bloc remains committed to low tariffs to "drive growth and economic stability within a strong, rules-based trading system", he said.

Trump has not hidden his enmity for the EU, accusing it of treating the US "very, very unfairly" on trade.

Tensions have also risen over his repeated insistence that he wants to take Greenland from EU member Denmark.

Back in 2018, during his first term, Trump imposed tariffs on European steel and aluminum exports, leading the EU to respond with its own higher duties.

As a result, Europe has been gaming out scenarios for months to ensure it is ready this time around, should Trump decide to unleash a new trade conflict with the bloc.

EU diplomats and officials insist they stand united and have the tools to respond to any Trump measures, but experts also point to likely cracks if he ups the pressure.

Economic powerhouse Germany- facing a fraught election this month and a sluggish economy -has been squeamish over tariffs.

Trump is also likely to try to play the interests of the individual EU states off against each other.

Italian Foreign Minister Antonio Tajani wrote on Sunday that a "tariff war does not help anybody", saying Italy has ideas to protect its companies and that Rome will be a mediator with Washington.

Spanish Economy Minister Carlos Cuerpo, in an interview on Monday with Spanish radio station RNE, said the EU must remain united to respond to Trump's threats to levy tariffs on its products.

The EU's foreign policy chief Kaja Kallas warned on Monday that there are "no winners in trade wars" as the bloc met for defense talks in Brussels.

Talks announced

Trump said he would talk on Monday with the leaders of Canada and Mexico, which have announced retaliatory tariffs of their own, but he downplayed expectations that they would change his mind.

Speaking to reporters after he flew back to Washington on Sunday evening from a weekend in Florida, Trump said he was "speaking with (Canadian) Prime Minister (Justin)Trudeau tomorrow morning, and I'm also speaking with Mexico tomorrow morning".

"I don't expect anything very dramatic," he added.

A fervent supporter of tariffs, Trump had always maintained that their effect would be borne by foreign exporters, without being passed on to US consumers, contradicting the opinion of a broad range of experts.

Earlier on Sunday, he acknowledged on his Truth Social network that US citizens may feel economic "pain" from his tariffs.

"Will there be some pain? Yes, maybe (and maybe not!)" Trump wrote. "But we will Make America Great Again, and it will all be worth the price that must be paid."

Agencies Via Xinhua