US Tariffs: EU wants exemption
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The EU is asking to be excluded from American tariffs on imported steel and aluminium or it says it will retaliate in kind against the US. That came after President Donald Trump signed an order imposing stiff tariffs on steel and aluminum imports last week. Can Europe avoid a trade war? CGTN's Mariam Zaidi has more from Brussels.
The European Union - America's second largest source of steel imports, has denounced US President Donald Trump's plans to impose tariffs on steel and aluminum.
The EU says the tariffs violate World Trade Organization rules. And as a long standing US trading partner, it wants to be excluded from any punitive measures. If not, the European Union is preparing a robust response to reduce any negative impact on its economy.
CECILIA MALMSTROM EU TRADE COMMISSIONER "We suspect that the US move is effectively not based on security considerations but economic safeguard measures in disguise. So we are entitled to use the WTO safeguard agreement to rebalance the benefits we have granted to the US in the past. And these allow for measures according to the economic loss suffered. And we're discussing different US products."
The EU is considering tariffs of its own targeting 3.5 billion dollars of American goods from peanut butter and cranberry juice to bourbon and branded jeans. Trump hit back, threatening to tax European cars should the bloc retaliate.
FRASER CAMERON, ANALYST EU-ASIA CENTER "Trump's main inference in using the trade idea was targeting Germany. He obviously has a bad relationship with Merkel. He feels Germany is not pulling its weight in terms of defense. And that's why he made specific reference to German car companies being his next target. German response and EU response is that we must stay united."
And to complicate the matter, the US president, who has long advocated for European allies to step up their contributions to NATO - has linked trade tariffs to defense spending.
NINA SCHICK, ANALYST RASMUSSEN GLOBAL "Even though Donald Trump has a point there, that EU countries should be spending what they've committed to on security, that does not tie into trade. In fact, that might backfire where countries like Germany particularly who are not fond of Donald Trump will not take kindly to be bullied by Donald Trump. I don't think the EU will back down. I don't think it'll make concessions to Donald Trump."
MARIAM ZAIDI BRUSSELS "Donald Trump's 15-day deadline - for allies to negotiate exemptions on metal imports - falls across the two days that EU leaders gather for a summit in Brussels. The EU Council President Donald Tusk has already called on the U.S. president to "make trade not war". But should the bloc not be excluded from the measures, it stands ready to counter-punch with a firm, resolute and proportionate response. Mariam Zaidi, CGTN, Brussels."