Trump to impose steel, aluminum tariffs on EU, Europe ready to retaliate
The Indian Express: June 01, 2018
After failing to win concessions from the European Union, tariffs are likely to be imposed on European steel and aluminium imports by the Donald Trump administration, reported Reuters. The European Union is ready to retaliate immediately following the tariffs. European Commission President Jean-Claude Juncker told AP that “it’s totally unacceptable that a country is imposing unilateral measures when it comes to world trade.”
He added that Europe will respond with “counterbalancing measures” soon.
Imposition of tariffs on European steel and aluminium imports could provoke retaliatory tariffs and inflame trans-Atlantic trade tensions. US and European officials held talks in Paris Thursday in an attempt to reach a deal.
“Global trade is not a gunfight at the OK Corral,” France’s finance minister quipped after meeting US Commerce Secretary Wilbur Ross, as reported by PTI. “It’s not about who attacks whom, and then wait and see who is still standing at the end.”
The imposition of tariffs was opposed by German Chancellor Angela Merkel on Thursday. EU leaders want “exceptions from these tariffs and have offered to hold talks on a certain basis.” But if there are no exemptions, she said, “We will respond in an intelligent, decisive and joint way,” Merkel said in Lisbon.
EU Commission spokesman Margaritis Schinas said Thursday the European side is “ready to deal with any kind of scenario, and to defend the EU interests and international trade law.”
Earlier, in March, Trump had announced that US would impose a 25 per cent tariff on imported steel and a 10 per cent tariff on imported aluminium for security interests. However, later he granted an exemption to the EU and other US allies; that reprieve expires Friday.
French Finance Minister Bruno Le Maire termed the US tariffs as “unjustified unjustifiable and dangerous”.
European Union’s trade commissioner Cecilia Malmstrom had a meeting scheduled with the US Trade Representative Robert Lighthizer in Paris on Thursday among other international trade chiefs. Malmstrom sees no hope and expects US to impose some kind of cap on EU exports.
Economists are of the view that tariffs on steel and aluminium imports could help local producers of the metals by making foreign products more expensive, however, they might not be beneficial to the US manufacturers. Imposition of tariffs could increase the costs more for the manufacturers as they cannot source all their needs locally and have to import the materials. this move would hurt the companies and might lead to more expensive consumer prices.
French President Emmanuel Macron during a speech said on Wednesday, “Unilateral responses and threats over trade war will solve nothing of the serious imbalances in world trade. Nothing.”
Macron further said, “These solutions might bring symbolic satisfaction in the short term…. One can think about making voters happy by saying, ‘I have a victory, I’ll change the rules, you’ll see.'” But Macron said those “who waged bilateral trade wars… saw an increase in prices and an increase in unemployment.”
In the name of national security, the Trump administration is also investigating possible limits on foreign cars.
Critical over the tough negotiating position of the EU by Ross, German Economy Minister Peter Altmaier thought otherwise and said that the Europeans were willing to negotiate special trade arrangements, notably for liquefied natural gas and industrial goods, including cars.
Link: http://indianexpress.com/article/world/donald-trump-to-impose-steel-aluminum-tariffs-on-eu-europe-ready-to-retaliate-5198998/
After failing to win concessions from the European Union, tariffs are likely to be imposed on European steel and aluminium imports by the Donald Trump administration, reported Reuters. The European Union is ready to retaliate immediately following the tariffs. European Commission President Jean-Claude Juncker told AP that “it’s totally unacceptable that a country is imposing unilateral measures when it comes to world trade.”
He added that Europe will respond with “counterbalancing measures” soon.
Imposition of tariffs on European steel and aluminium imports could provoke retaliatory tariffs and inflame trans-Atlantic trade tensions. US and European officials held talks in Paris Thursday in an attempt to reach a deal.
“Global trade is not a gunfight at the OK Corral,” France’s finance minister quipped after meeting US Commerce Secretary Wilbur Ross, as reported by PTI. “It’s not about who attacks whom, and then wait and see who is still standing at the end.”
The imposition of tariffs was opposed by German Chancellor Angela Merkel on Thursday. EU leaders want “exceptions from these tariffs and have offered to hold talks on a certain basis.” But if there are no exemptions, she said, “We will respond in an intelligent, decisive and joint way,” Merkel said in Lisbon.
EU Commission spokesman Margaritis Schinas said Thursday the European side is “ready to deal with any kind of scenario, and to defend the EU interests and international trade law.”
Earlier, in March, Trump had announced that US would impose a 25 per cent tariff on imported steel and a 10 per cent tariff on imported aluminium for security interests. However, later he granted an exemption to the EU and other US allies; that reprieve expires Friday.
French Finance Minister Bruno Le Maire termed the US tariffs as “unjustified unjustifiable and dangerous”.
European Union’s trade commissioner Cecilia Malmstrom had a meeting scheduled with the US Trade Representative Robert Lighthizer in Paris on Thursday among other international trade chiefs. Malmstrom sees no hope and expects US to impose some kind of cap on EU exports.
Economists are of the view that tariffs on steel and aluminium imports could help local producers of the metals by making foreign products more expensive, however, they might not be beneficial to the US manufacturers. Imposition of tariffs could increase the costs more for the manufacturers as they cannot source all their needs locally and have to import the materials. this move would hurt the companies and might lead to more expensive consumer prices.
French President Emmanuel Macron during a speech said on Wednesday, “Unilateral responses and threats over trade war will solve nothing of the serious imbalances in world trade. Nothing.”
Macron further said, “These solutions might bring symbolic satisfaction in the short term…. One can think about making voters happy by saying, ‘I have a victory, I’ll change the rules, you’ll see.'” But Macron said those “who waged bilateral trade wars… saw an increase in prices and an increase in unemployment.”
In the name of national security, the Trump administration is also investigating possible limits on foreign cars.
Critical over the tough negotiating position of the EU by Ross, German Economy Minister Peter Altmaier thought otherwise and said that the Europeans were willing to negotiate special trade arrangements, notably for liquefied natural gas and industrial goods, including cars.
Link: http://indianexpress.com/article/world/donald-trump-to-impose-steel-aluminum-tariffs-on-eu-europe-ready-to-retaliate-5198998/
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