BRUSSELS: The EU on Monday said Europe would not waver against trade “bullies” as a row with US President Donald Trump over controversial steel and aluminium tariffs deepened.

The jab from Brussels came after the US tycoon singled out Europe in the surging trade dispute, threatening to tax German cars if the European Union doesn’t lower barriers to US products.

European Trade Commissioner Cecilia Malmstroem said that in some places, trade has been blamed “for the pains of globalisation, or they used it as a scapegoat or they think we can live behind walls and borders”.

“Recently we have seen how it is used as a weapon to threaten and intimidate us. But we are not afraid, we will stand up to the bullies,” she told a trade conference in Brussels.

Trump in a tweet provoked the Europeans still further on Monday saying his Commerce Secretary Wilbur Ross would speak with the EU side “about eliminating the large tariffs and barriers they use against the USA.” These were “not fair to our farmers and manufacturers,” Trump added, though the EU could not immediately confirm any formal approach by Washington.

The US leader’s threats were part of a dispute sparked by his announcement of tariffs on steel and aluminium imports, although the “America First” Trump administration has said it will consider exceptions and has already spared Mexico and Canada.

The announcement of duties of 25 per cent on imported steel and 10pc on aluminium has stung the EU, coming as a surprise to US allies and also to many in Washington.

Brussels has pushed back the hardest against Washington’s shock measures, loudly announcing a list of US products — including peanuts and motorcycles — it could hit with countermeasures.

‘Historical error’

In revealing those measures, European Commission head Jean-Claude Juncker taunted Trump, saying the EU could match “stupid with stupid.” Other trade partners, including Japan and China, have also voiced anger and pledged retaliation if the US tariffs are enacted as expected on March 23.

Many traditionally pro-trade US Republican lawmakers also fiercely oppose the tariffs, saying they might help steel and aluminium makers, but would mean higher prices on many other products.

Europeans however expressed fears over the costs of escalation, taking the lead from export powerhouse Germany which has urged caution after being singled out by the mercurial Trump.

“Protectionism is always a political error, a historical error,” said Spanish Economy Minister Roman Escolano as he arrived for regular talks in Brussels with his eurozone counterparts.

“Two economic and trade blocs as great as the United States and the EU can in no way see the conflict escalate,” he added.

To avoid all-out trade war, Malmstroem held fruitless talks in Brussels on Saturday with US Trade Representative Robert Lighthizer aimed at defusing the row.

“Dialogue is always the prime option for the EU,” European Commission spokesman Enrico Brivio said at a news briefing on Monday.

Published in Dawn, March 13th, 2018