EU offers zero tariff deal, but readies for trade war with US

Trade Turmoil

- PHILIP BLENKINSOP

THE EUROPEAN UNION said on Monday it would start collecting retaliatory duties on some imported U.S. goods next week, as EU trade ministers agreed they preferred negotiations to remove tariffs imposed by President Donald Trump over retaliation.

The 27-nation bloc faces 25% import tariffs on steel and aluminum and cars and "reciprocal" tariffs of 20% from Wednesday for almost all other goods under Trump's policy to hit countries he says impose high barriers to U.S. imports.

Ministers overseeing trade met in Luxembourg on Monday to debate the EU's response, as well as discuss relations with China. Many said the priority was to launch negotiations and avert an outright trade war.

"We need to remain calm and respond in a way that de-escalates. The stock markets right now show what will happen if we escalate straightaway. But we will be prepared to take countermeasures if needed to get the Americans at the table," Dutch Trade Minister Reinette Klever told reporters.