A bad day for world trade: US moves forward with imposing tariffs on steel and aluminium, without exception for Canada, Mexico and the European block. The new measures 25% percent on steel and 10% on aluminium go into effect on 1. June 2018, US time. The European Union threatens with retaliation. Tension between the two fronts runs high.
The EU confirmed Thursday that it would retaliate against steel and aluminum tariffs imposed by U.S. President Donald Trump, in what many European officials fear could be the first salvos of a transatlantic trade war.
The US tariffs list published in March includes also Harley Davidson motorcycles and Kentucky Bourbon Whiskey
European leaders had hoped that Washington would exempt the EU from tariffs, or would instead impose a quota system. Trump, however, ultimately decided to roll out the full 25 percent additional tariff on steel, and 10 percent on aluminum as originally threatened.
It’s a bad day for world trade. US leaves us no choice but to proceed with a WTO dispute settlement case and the imposition of additional duties on a number of US imports. We will defend the EU’s interests, in full compliance with international trade law. https://t.co/J3wPW5Ew7K pic.twitter.com/aDlOWcSgRv
— Jean-Claude Juncker (@JunckerEU) May 31, 2018
German Chancellor Angela Merkel said the EU would respond in a “firm and united” manner to the tariffs. “We want to be exempt from these tariffs” which were “not compatible” with World Trade Organization (WTO) rules, Merkel told a press conference with Portuguese premier Antonio Costa in Lisbon.
German Foreign Minister Heiko Maas meanwhile warned against the threat of protectionism, telling reporters Thursday that international partners could have “no interest in the clock being turned back” on trade policy.
“Our Response to America First is Europe United,” Maas is being quoted.
I am very disappointed by President Trump's decision to impose duties on EU steel and aluminium imports. We stand by our European workers and industry and will respond with all available tools to defend our interests. Unilateral trade tariffs are always a negative sum game.
— Antonio Tajani (@EP_President) May 31, 2018
“We will now trigger a dispute settlement case at the WTO, since these U.S. measures clearly go against agreed international rules. We will also impose rebalancing measures and take any necessary steps to protect the EU market from trade diversion caused by these U.S. restrictions,” said European Commissioner for Trade Cecilia Malmström.
The European Union has already notified the World Trade Organization of plans to levy duties on about $7 billion worth of U.S. exports in response, with the aim of collecting $1.6 billion in tariff revenue.
