EU redoubles threat to retaliate if U.S. raises auto tariffs

The European Union is keen to work with Washington to reform the World Trade Organization and cooperate on common challenges to global trade, but will retaliate if Washington makes good on its threat to raise car tariffs, a top EU official said on Monday.

Sabine Weyand, the European Commission’s director general of trade and former deputy Brexit negotiator, struck a conciliatory but firm tone in remarks during her first official visit to Washington since taking on her new role a month ago.

The longtime EU diplomat underscored the EU’s interest in avoiding a spiral of escalating tariffs on cars, aircraft and other goods, and work instead with the United States to address mutual concerns about China’s behavior on world markets. But she said Brussels would not be bullied by the threat of sanctions that it views as illegal under World Trade Organization rules, and was pursuing a more assertive path.

If Washington pushed ahead with its threat to raise auto tariffs to 25%, Brussels would respond with tariffs of its own, resulting in a “lose-lose” situation for all involved, she said.