The EU has condemned the us plans for the hard of tariffs on steel and aluminum from imports, saying that jeopardize jobs in europe.
European commissioner for trade, Cecilia Malmstrom set out plans to retaliate against the proposal of tariffs of the united states.
These include an increase in the import tariffs of bourbon, peanut butter, blueberries, orange juice, steel, and industrial products, she said.
On Tuesday, Donald Trump’s top economic adviser Gary Cohn, who opposes the tariffs, resigned.
That was after Mr Trump said that the EU trade rules make it “impossible” for the u.s. companies to do business with the block.
Ms Malmstrom said the US justification of the proposal the 25% tariff on steel imports and 10% of aluminium imports was that the national security is threatened.
“We have serious doubts about that justification. We cannot see how the European Union, friends and allies in the Nato, may be a threat to national security in the united states,” he said.
“We found that the assumption of deeply unfair”.What action is the EU taking into account?
Ms Malmstrom said that the EU is going to launch the processes in the World Trade Organization with other members of the organization. I was going to take measures to try to deal with an expected increase of steel and aluminum imports into the EU.
“From what we understand, the motivation of the USA is an economy of the safeguard measure in disguise, not a measure of national security,” he said.
The EU would take measures that coincide with the economic loss suffered by the EU.
“We are discussing different products on which different import tariffs can be imposed,” he said.
He added that the root cause of the problem with the steel and the aluminum is the global “excess capacity”, supported by the “massive state subsidies… in the absence of the conditions of the market.”Why is the EU worried about the fees?
Ms Malmstrom said: “We have made clear that if a movement like this is taken, it will hurt the European Union. You are going to put thousands of jobs in europe in danger, and has to be satisfied by a firm and proportionate response.”
The EU is a major exporter of steel to the united states, along with Canada and South Korea.
Ms Malmstrom said that the EU was “intensely talking” to US to try to persuade Washington to have a rethink”.
“A trade war has no winners,” she added.
President of the european union, Donald Tusk, said: “There is a risk of a serious trade conflict between the united States and the rest of the world, including the EU.
“The president Trump has recently said, and I quote, “Trade wars are good and easy to win’. But the truth is quite the opposite. Trade wars are bad and very easy to lose,” he said.Why Trump wants to impose metals tariffs?
One of Mr Trump’s campaign promises was to revitalize the us steel industry.
“As in the American steel of Pennsylvania that built the Empire State Building, it will be American steel that will strengthen America’s crumbling bridges,” he said in a 2016 campaign rally.
Mr Trump and his supporters have focused their anger on cheap Chinese steel, that the blame for the problems in the u.s. steel industry.