EU 'ready to defend' interests after Trump tariff vow

EU 'ready to defend' interests after Trump tariff vow

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EU ready to defend interests after Trump tariff vow

The European Union stands "ready" to defend its interests, the bloc's economy commissioner has said, after U.S. President Donald Trump promised a policy of tariffs and taxes on other countries in his inaugural address.

"If there is a need to defend Europe's economic interests, we are ready to do so," Valdis Dombrovskis said when asked about the threat by Trump, who stopped short of announcing immediate new tariffs on U.S. trading partners.

Dombrovskis noted that the EU had responded "in a proportionate way" to tariffs on EU steel and aluminium during Trump's first administration in 2017-2021, by targeting U.S. imports such as Harley-Davidson motorbikes and Bourbon.

Before taking office this time around, Trump made sweeping threats of tariffs including against the United States' largest trading partner the EU, its neighbours Canada and Mexico and its strategic rival China.

Faced with the looming threat, the EU's strategy has for months been to advocate EU-U.S. cooperation rather than confrontation.

"The EU and US are strategic allies, and we need to work together, especially in this turbulent geopolitical context," Dombrovskis reiterated, warning that a trade conflict would carry "substantial economic cost for everyone, including for U.S.".

He also warned the EU must "work on the resilience of our economy", including by seeking to diversify its trading partnerships.

The EU announced a strengthened trade deal with Mexico just ahead of Trump's inauguration, and on Jan. 20 it announced it was resuming talks towards a free trade deal with Malaysia.

Since his election victory, Trump has taken aim at foreign allies and adversaries alike, raising the prospect of fresh levies to push other countries towards tougher action on U.S. priorities.

Early on Jan. 20, Trump vowed: "I will immediately begin the overhaul of our trade system to protect American workers and families."

"Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens," Trump added in an inaugural address as president.

Trump said on Jan. 20 he may impose 25 percent tariffs on Canada and Mexico as early as Feb 1.

Trump rekindled his threat against the two major US trading partners hours after taking the oath of office, accusing them of failing to stop illegal immigration and drug trafficking into the United States.

"We're thinking in terms of 25 percent on Mexico and Canada, because they're allowing vast numbers of people, Canada's a very bad abuser also, vast numbers of people to come in, and fentanyl to come in," he said in the Oval Office as he signed an array of executive orders.