EU, China ‘ready to retaliate’ if Trump imposes more tariffs

The European Union and China have warned that if US President Donald Trump imposes new tariffs in bilateral trade, they will respond in kind.

European Commission President Jean-Claude Juncker called on the US president not to violate a “ceasefire” they agreed on over import tariffs last month. He told German broadcaster ZDF on Friday that the 28-member bloc would not let anyone determine its trade policies.

Junker met Trump in Washington last month. The two agreed to open discussions about a trade agreement on industrial goods, but cars were left out of the deal.

Referring to the agreement he said on Friday, “We agreed with Trump on a kind of ceasefire when it comes to new car tariffs.”

“As is the case with ceasefires, sometimes they come under threat but they are still respected,” he added.

The European Commission president warned that if Trump were to violate that agreement and impose tariffs on car imports from the European Union, “then we will do the same.”

Brussels would be willing to negotiate a zero tariff deal with Washington “if the US does the same,” according to the EU trade commissioner Cecilia Malmstrom.

“If that would happen it would be good for us economically and good for them, it would be beneficial,” she said. “We will do it if they do it.”

Trump, however, said the EU offer for no tariffs on cars is “not good enough.”

“Their consumer habits are to buy their cars, not to buy our cars,” he said in an interview with Bloomberg News on Thursday.

Trump is also locked in a trade war with China over tariffs.

China's foreign ministry said on Friday that putting pressure on Beijing over trade won't work.

Ministry spokeswoman Hua Chunying made the comments at a daily news briefing in Beijing.

"So-called hardline, pressure-exerting methods of the US side won't work on China and are not helpful to resolving the problem," said Chinese foreign ministry spokeswoman Hua Chunying.

She said Beijing is willing to resolve the trade dispute with the US on the basis of “an equal footing and mutual respect”. The foreign ministry said this is what the international community wants to see.

SS