The President of the European Commission, Jean-Claude Juncker expressed his concern following the decision by the US that starting on 1 June 2018 ,it will impose additional duties of 25 % and 10 % respectively on imports of steel and aluminium from the EU
Juncker added that the EU believes these unilateral US tariffs are unjustified and at odds with World Trade Organisation rules. This is protectionism, pure and simple. Over the past months we have continuously engaged with the US at all possible levels to jointly address the problem of overcapacity in the steel sector. Overcapacity remains at the heart of the problem and the EU is not the source of but on the contrary equally hurt by it. That is why we are determined to work towards structural solutions together with our partners.
We have also consistently indicated our openness to discussing ways to improve bilateral trade relations with the US but have made it clear that the EU will not negotiate under threat.
By targeting those who are not responsible for over-capacities, the US is playing into the hands of those who are responsible for the problem. The US now leaves us with no choice but to proceed with a WTO dispute settlement case and with the imposition of additional duties on a number of imports from the US. We will defend the Union’s interests, in full compliance with international trade law.”
Commissioner for Trade Cecilia Malmström said: “Today is a bad day for world trade. We did everything to avoid this outcome. Over the last couple of months I have spoken at numerous occasions with the US Secretary of Commerce.”
Malmstrom said “I have argued for the EU and the US to engage in a positive transatlantic trade agenda, and for the EU to be fully, permanently and unconditionally exempted from these tariffs. This is also what EU leaders have asked for. Throughout these talks, the US has sought to use the threat of trade restrictions as leverage to obtain concessions from the EU. This is not the way we do business, and certainly not between longstanding partners, friends and allies. Now that we have clarity, the EU’s response will be proportionate and in accordance with WTO rules. We will now trigger a dispute settlement case at the WTO, since these US 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 US restrictions.”
Earlier the US imposed tariffs on EU aluminium and steel
Commerce Secretary Wilbur Ross told reporters on that the US is imposing a 25% tariff on steel imports and a 10% tariff on aluminium imports. Canada and Mexico are also targeted by the revision that will go into effect at midnight on Friday.
Ross met French Finance Minister Bruno Le Maire on earlier Thursday, but little encouraging signs have been forthcoming. Speaking to the press after the meeting, Le Maire said Europe did not want a trade war and that it is solely for Washington to decide “whether they want to enter into a trade conflict with their biggest partner.”
Bruno Le Maire said the EU would respond to tariff imposition but said he still hoped the US would abandon the “unjustified, unjustifiable and dangerous tariffs”.
The American counterpart told Le Figaro that any escalations would only be the result of European retaliation, dropping a hint that the US had made up its mind on the matter.
The European Commission plans to impose tariffs on €2.8 billion ($3.4 billion) worth of American goods received the support of member states. The duties would apply to bourbon and motorcycles among other products. US duties on EU exports are worth a potential €6.4 billion ($7.5 billion).
Germany was initially keen on a softer approach towards the US, but Economy Minister Peter Altmaier appeared with Le Maire in Paris on Wednesday vowing a unified stance.
“We are prepared to react in a united and clear way whatever the decision of the (US) president,” he said.
Meanwhile, German business news magazine Wirtschaftswoche reports that the American President is intent on hitting European cars with duties. The Trump administration recently set in motion an investigation into automobile imports, using the same 1962 law applied to control imports of steel and aluminium.
Sources: CNN, Euronews, European Commission, Reuters.
