Trade War Between EU and US Begins

The President of the European Commission called the special US tariffs on steel and aluminum unacceptable. She said the European Union will take retaliatory action. Britain and Mexico have also reacted. There is talk of a trade war.

Donald Trump, the President of the United States, did not write a tweet or express himself personally this time. Instead, he sent Wilbur Ross, the Secretary of Commerce, to the front. Ross announced Trump’s decision and said: Starting this Friday, a 25 percent tariff on all steel imports from the European Union, as well as Canada and Mexico, and a 10 percent tariff on aluminum will be imposed.

The United States had temporarily exempted these countries from paying tariffs in March. This three-month exemption will end at 6 a.m. on June 1st, Central European Time.

The European Union has announced that it will respond to the imposition of special tariffs on European steel and aluminum.

Jean-Claude Juncker, President of the European Commission, said that this special tariff is by no means acceptable: “Today is a bad day for world trade.” He added that the European Union will announce retaliatory measures “in the coming hours.”

Cecilia Malmström, the EU’s Trade Commissioner, said in this regard that the European Union’s response will be proportionate and in compliance with the rules of the World Trade Organization (WTO). She added that the EU will now activate appropriate dispute resolution mechanisms in the WTO.

Wilbur Ross, the US Secretary of Commerce, told the CNBC network that retaliatory measures by the European Union or other countries will not have significant impact on the US economy.

“The EU Must Stand Firm”

Reinhard Bütikofer is a member of the Green faction of the European Parliament and an expert on transatlantic relations. In an interview with Germany’s first television network, he emphasized that the European Union must show US President Trump that it will not allow anyone to punish or criticize this union. He added that retaliatory measures are being prepared and countervailing tariffs will be imposed on certain American goods, although they will not reach the level of the special US tariffs on steel and aluminum.

Reactions from Mexico and Britain

The British government also expressed “regret” in its first reaction to the US government’s decision. A government spokesman said that Britain and the European Union are close allies of the United States and exemption from tariffs for them should be unlimited. This British government spokesman added that his government will work together with the European Union and the United States to reach this goal.

Mexico’s Ministry of Economy also said it intends to take retaliatory action against the special tariffs. The ministry announced that it will impose tariffs on American products at the level of US tariffs. Mexico’s tariffs will remain in effect as long as US tariffs on steel and aluminum remain in place.

Source: DW