Faithful to his America first rhetoric, Donald Trump is determined to protect US metal producers from unfair competition. In March, the US president imposed tariffs on steel and aluminum imports, though he allowed temporary exemptions for some countries. He is extending negotiations with the EU, Canada, and Mexico for 1 month until the trade deal is finalized with China. Commenting Trump’s decision, European Parliament President Antonio Tajani said that the EU insists on full exemption from metal tariffs once and forever.
Any other scenario is sure to disrupt trade between the EU and the US. European policymakers are ready to take tough countermeasures in the war of tariffs. Brussels is considering retaliation with its own tariffs on US imports including orange juice, Levi’s jeans, Kentucky bourbon, and Harley-Davidson motorcycles. These countermeasures will be enough to squeeze US goods out of European markets. Leaders of France, Germany, and the UK – Emmanuel Macron, Angela Merkel, and Theresa May – have agreed on collective efforts. “The European Union should be ready to decisively defend its interests within the framework of multilateral trade rules”, the leaders made a joint statement. Interestingly, South Korea, Argentina, Australia, and Brazil had to make concessions on the US conditions. Meanwhile, only China and the EU are the most powerful opponents who can make the White House soften its rhetoric.
