Merkel: Europe Will Push Back If Hit With Trade Tariffs
Merkel: Europe Will Push Back If Hit With Trade Tariffs
01 May, 2018, 04:56
In the case of Canada and Mexico, Trump's administration tied both countries' tariff exemptions to the successful renegotiation of the North American Free Trade Agreement.
President Donald Trump will decide by midnight Monday if the us will slap permanent aluminum and steel tariffs on the European Union, inflaming trans-Atlantic tensions and raising the chances of a global trade conflict.
The leaders agreed to work with the rest of the European Union and the Trump administration to secure permanent exemptions, according to the a readout from May's office. This is due to expire on the 1st May.
These tariffs officially came into effect in March.
"The president has not made any decision yet", Treasury Secretary Steven Mnuchin told Fox Business Network in an interview that aired Monday, when asked about extending exemptions to trading partners.
In a previous interview with Bloomberg, US commerce secretary Wilbur Ross said some countries would be granted relief from the tariffs, though he declined to say which. Ross did not name the countries.
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"We have been discussing this with the USA administration and letting them know it would be a very bad idea to disrupt (the) very complex trade between Canada and the United States when it comes to steel and aluminum", said Trudeau.
Canada is the largest source of steel imports into the United States, with a steel industry that is highly integrated with its southern neighbor. But in exchange, South Korea had to reduce its steel exports to the U.S.by about 30 percent, Similar quotas could be imposed on other countries as part of a final deal.
President Donald Trump will decide by midnight Monday if the US will slap permanent aluminum and steel tariffs on the European Union. She has insisted on a permanent exemption without conditions.
"The only thing that I can tell you today is that we are patient but we are also prepared", Commission spokesman Margaritis Schinas told a news conference.
A spokesperson for the British government added that leaders in the European Union are discussing "the vital importance of our steel and aluminium industries and their concern about the impact of U.S. tariffs" and they have "pledged to continue to work closely with the rest of the European Union and the United States administration with the aim of a permanent exemption from USA tariffs".
The EU and USA are the world's biggest economic partners, with two-way trade valued at US$765 billion (632 billion euros) for goods in 2017 and at 437 billion euros for services in 2016, according to the European Commission.
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