French trade minister warns EU not to be
In the wake of US President Donald Trump's announcement to impose tariffs on Canada, Mexico and China, European officials prepare themselves for possible US levies on European products.
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Europe must "assume a form of power dynamic" in the face of Donald Trump's tariff threats, French Industry Minister Marc Ferracci said on Sunday, calling for a "biting" response to the American president.
"Trade negotiations with Donald Trump must assume a form of power dynamic," Ferracci told France Info on Sunday, following the United States' imposition of 25 percent tariffs on products from Canada and Mexico, and an additional 10 percent on existing tariffs on Chinese products.
As the American president has threatened to also sanction the European Union, "it is obvious that we must react," Ferracci stated, while adding that "we are waiting for the American administration's decisions on what will concern Europe".
According to him, "to be effective, the response must focus on products that are important to your interlocutor and the country with which you are negotiating."
He emphasized that "it must be 'biting,' meaning it should have an impact on the American economy to have a credible threat in negotiations."
"We must abandon naivety," Ferracci further stated, while calling to "better protect our industry" by implementing a "Buy European Act" to favor products made in Europe."
Brussels had until now indicated it hoped to avoid a trade conflict with Trump through negotiation.
But Trump said on Friday that he "absolutely" planned to target the EU in future, as he slapped levies on his north American neighbours and China.
"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 spokesman said "the EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods".
"At this time, we are not aware of any additional tariffs being imposed on EU products," he added.
He said the 27-nation EU remained committed to low tariffs as a way to "drive growth and economic stability within a strong, rules-based trading system".
And he reiterated the EU's commitment to its trade and investment relationship with the United States -- "the biggest in the world".
"There is a lot at stake," said the spokesman. "We should both be looking at strengthening this relationship."
(With Newswires)
