Mubasher: The European Union’s (EU) Trade Commissioner Cecilia Malmstrom called on US President Donald Trump to lift tariffs on the EU, if he looks for the bloc’s cooperation with Washington in pressuring China to adhere to rules governing the global economy.

Malmstrom and US Trade Representative Robert Lighthizer have had productive discussions on how to tackle Chinese industrial policies and overhaul the World Trade Organization (WTO), the chief trade negotiator told Bloomberg in Washington.

“We have a problem: China is dumping the market, China is subsidizing their industry, this creates global distortions […] so what is the solution? Well, we think it is to cooperate on China,” Malmstrom said.

EU member states made lifting the US duties on European steel and aluminium imports a precondition for the conclusion of any bilateral trade pact, she noted, adding that both sides “should work on common threats and common challenges and not impose tariffs on each other.”

Last month, US Commerce Department submitted a report to President Trump to assess the national-security risks of car and auto component imports.

Trump, who threatened to slap tariffs of up to 25% on EU vehicles, would have until mid-May to take any action on whether to levy tariffs.

If imposed, the EU would levy tariffs on EUR 20 billion ($22.4 billion) in US goods, Malmstrom said.

A list of US products, which include segments of car industry, is being drafted, she noted, adding that this would be done “with a very heavy heart.”

“The solution to these problems is not imposing tariffs on the European Union,” the trade commissioner said.