EU ready to retaliate in tariff fight with US

The European Union said on Saturday it was ready to retaliate to defend its interests if the United States pressed ahead with imposing a 30% tariff on European goods from August 1, reports Reuters.

US President Donald Trump latest salvo surprised the bloc, the United States' largest trading partner, which had hoped to avoid an escalating trade war after intense negotiations and increasingly warm words from the White House.

Ursula von der Leyen, head of the EU executive which handles trade policy for the 27 member states, said the bloc was ready to keep working towards an agreement before August 1, but was willing to stand firm.

"We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," she said of possible retaliatory tariffs on US goods entering Europe.

EU ambassadors were due to discuss next steps on Sunday, before trade ministers meet in Brussels on Monday for an extraordinary meeting. They will need to decide whether to impose tariffs on 21 billion euros of US imports in retaliation against separate US tariffs against steel and aluminium, or extend a suspension which lasts until the end of Monday.