United States to Impose Steel Tariffs on EU

United States to Impose Steel Tariffs on EU

United States to Impose Steel Tariffs on EU

Canada will also launch challenges of the USA tariffs at the World Trade Organization and through a Nafta panel. Officials said the import taxes would take effect on Friday.

Europe did not want a trade war, he said, but Washington had to back down from "unjustified, unjustifiable and unsafe tariffs".

The European Union has threatened tariffs on Harley Davidson motorcycles and bourbon, measures aimed at the political bases of U.S. Republican legislators. He added, "This is protectionism, pure and simple". But he delayed the measure to give time for negotiations.

Following the U.S.'s surprise announcement of the tariffs on steel and aluminium earlier this year, the European Commission warned of the possibility of retaliatory action in the forms of tariffs on USA imports to Europe such as on Harley Davidson bikes, and Levi's jeans. Steel will be subject to a 25% duty while aluminium will be subject to a 10% duty.

Meanwhile, the commerce secretary said he plans to go to China for trade talks on Friday, another country with which the USA has developed an extremely tense relationship over trade differences under the Trump administration.

The Commission has said the European Union will set duties on 2.8 billion euros (US$3.4 billion) of USA exports, including peanut butter and denim jeans, if its metals exports to the United States worth 6.4 billion euros (US$7.5 billion) are subject to tariffs.

European officials, bracing for the tariffs, have threatened to retaliate against US orange juice, peanut butter, kitchenware, clothing and footwear, washing machines, textiles, whiskey, motorcycles, boats and batteries.

The Mexican economic ministry said it would move to place tariffs on American pork, flat steel, apples, cheese, and other products.

President Donald Trump walks with Health and Human Services Secretary Alex Azar as they arrive for the White House Sports and Fitness Day event on the South Lawn of the White House in Washington, Wednesday, May 30, 2018. Even if the US was able to produce larger amounts of both metals, tariffs push up the cost of domestically produced materials, as well - making it a lose-lose situation for consumers and businesses, said White. A handful of other US trading partners, including South Korea, Australia, Argentina and Brazil, previously won permanent exemptions by agreeing to quotas on their exports. Tariffs will remain on imports from Japan.

Wilbur Ross, U.S. commerce secretary, who's in Europe and has been pressing the European Union to make concessions to avert the tariffs, dismissed threats of a trade war, saying retaliation would have no impact on the U.S. economy. Officials noted this is the strongest trade action Canada has taken in the post-war era.

Mexico will target the U.S. agricultural sector for tariffs.

German Chancellor Angela Merkel stressed her opposition even before the USA announcement, saying the looming tariffs were incompatible with World Trade Organization rules.

French Finance Minister Bruno Le Maire criticized the tariffs.

The EU said it would retaliate with tariffs on products like United States bourbon.

During a conference call early Thursday, Commerce Secretary Wilbur Ross played down the divisions.

Even some of Trump's supporters criticized the measures.

Economists are of the view that tariffs on steel and aluminium imports could help local producers of the metals by making foreign products more expensive, however, they might not be beneficial to the United States manufacturers. He added that it would hurt both workers and businesses.

"It's not everyone attacking the other and we see who remains standing at the end", he said, declaring that the stiff USA duties were "unjustified, unjustifiable and unsafe".

The administration has maintained that a new deal between the USA and its neighbors would reduce trade deficits and bring back jobs to American workers.

The Associated Press reported this story. Just over 400,000 people in the USA work in metal-producing jobs, economist Jed Kolko wrote in March.

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