EU will defend its economy unless US changes tariff policy - Dombrovskis

WARSAW - The European Union (EU) will act to defend its economy and companies unless the United States changes course on its aggressive tariffs policy, the EU Commissioner for Economy and Productivity, Implementation and Simplification, Valdis Dombrovskis, said as European finance ministers held talks Friday.

"We are willing to work with US and find constructive solutions, mutually acceptable solutions," Dombrovskis said ahead of the ministers' talks in Warsaw.

"Obviously we are also passing the message that if we do not see movement also from US side and willingness to move away from this kind of tariff policy, we will have to defend our economy. We will have defend our companies," he added.

Dombrovskis said he believed the EU would fare better than the United States as Trump unleashes tariffs on allies and partners around the world.

Dombrovskis will join the ministers for two days of talks about the market turmoil and how to minimize the impact on the European economy if Trump doesn't back down.

Eurogroup president Paschal Donohoe, who heads the group of ministers for the 20-nation single currency area, pointed to the eurozone's economic strength.

"I remain very, very confident that the economic foundations of the euro area are resilient and strong," he told reporters.

He said the pause was "a window for opportunity" for Brussels to engage Washington and "negotiate an alternative to a path that will lead us all to a world of lower growth, of higher inflation and to many risks to the progress that we've made in recent years".

The 27-country European Union obtained a reprieve after US President Donald Trump on Wednesday suspended higher US duties for 90 days -- and in turn has pausing plans for retaliatory tariffs in hope of reaching a negotiated solution.

The bloc also still has to contend with Trump's 25-percent tariffs on steel and aluminum as well as cars.