European Union Council President Antonio Costa called for a "constructive position" with the United States on trade tariffs to prevent a trade war, speaking on Monday ahead of a G7 meeting in Canada.

Costa emphasized that if the EU faced discriminatory measures, it would need to respond, noting that "the European Commission is prepared to respond, particularly in trade matters."

"We have to keep nerves of steel. I have great hope that, in the end, some line of rationality will guide political action... as no tariff will increase U.S. exports of goods or services to Europe," Costa said in a videotaped conversation with former EU Commission President Jose Manuel Durao Barroso at a conference in Lisbon.

The EU Council President highlighted that the European Commission had already made what he described as "the most generous proposal it could: zero tariffs."

Costa stressed the EU's main goal: "We basically want to avoid a trade war with the U.S." He added that Europe seeks to engage in "constructive dialogue" with the United States.

Trade issues are expected to be a key topic at the upcoming G7 meeting in Canada.

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Source: Investing.com