The EU-US trade war has begun.
The president of the European Commission has called the US's special tariffs on steel and aluminum unacceptable. He said the EU would retaliate. Britain and Mexico have also reacted. There is talk of a trade war.
Without tweeting or personally expressing his opinion, US President Donald Trump sent Commerce Secretary Wilbur Ross forward this time. Ross announced Trump's decision and said: "Starting this Friday, a 25% tariff will be imposed on all steel imports from the European Union, as well as Canada and Mexico, and a 10% tariff on aluminum."
The United States temporarily exempted these countries from paying tariffs in March. The three-month exemption ends at 6 a.m. Central European Time on June 1.
The European Union has announced that it will respond to the imposition of special tariffs on European steel and aluminum.
European Commission President Jean-Claude Juncker said the special tariff was "totally unacceptable": "Today is a bad day for global trade." He added that the EU would announce countermeasures "in the coming hours."
EU Trade Commissioner Cecilia Malmström said the EU's response would be proportionate and in line with World Trade Organization (WTO) rules. She added that the EU would now activate appropriate dispute resolution mechanisms at the WTO.
US Commerce Secretary Wilbur Ross told CNBC that retaliatory measures from the European Union or any other country would not have much of an impact on the US economy.
“The European Union must stand firm”
Reinhard Böttikofer, a member of the Greens in the European Parliament and an expert on transatlantic relations, told German TV station 1 that the EU must show US President Trump that it will not allow anyone to punish or criticize the EU. He added that countermeasures were being prepared and that reciprocal tariffs would be imposed on some US goods, although they would not reach the level of the US tariffs on steel and aluminium.
Mexico and Britain's reaction
The British government also “expressed regret” at the US decision in its initial response. A government spokesman said the UK and the EU were close allies of the US and that tariff exemptions for them should be unlimited. The spokesman added that his government would work with the EU and the US to achieve this goal.
Mexico's economy ministry has also said it intends to retaliate against the special tariffs. The ministry said it will impose tariffs on American products at the level of US customs duties. The Mexican tariffs will be in effect as long as the US tariffs on steel and aluminum remain in place.
Source: DW
