The EU’s
Commissioner for Trade Cecilia Malmström announced late Monday that the
European Union has drawn up a draft list of items that could face stiff
taxation following an announcement on March 2 by US President Donald J. Trump
that he welcomed the prospect of a trade war with the EU and China over steel
and aluminium imports to the United States.
The move by
Brussels is in-line with a statement by European Commission President
Jean-Claude Juncker, who indicated on March 2 that the Commission was looking
into a proposal on countermeasures compatible with World Trade Organisation
(WTO) regulations that will act as a coordinated response to the steel and
aluminium tariffs announced by Trump.
“The
Commissioners will discuss our reaction. It will be swift, firm, and
proportionate – based on three main criteria compatible with WTO rules,” said
the Commission’s chief spokesman Margaritis Schinas in reference to a scheduled
meeting on March 7. “Let me remind you the trade policy is not a zero-sum game.
It is not about winners or losers, and we believe that trade can and should be
win-win.”
Schinas
reiterated Juncker’s point that the EU “cannot be expected to bury our heads in
the sand when someone takes unilateral and unfair actions against us that put
thousands of European jobs at risk”.
If Trump’s
move on tariffs – which may also include EU-made automobiles – materialise in a
way that affects European interests, the European Union will be compelled to
enact equally punishing countermeasures, Schinas warned.
The
Greek-born Schinas stressed that the root cause of problems in the steel and
aluminium sectors is mainly due to global overcapacity and this can only be
addressed at the source, by working with key countries involved,” adding that
the EU is available to keep working on this together with the U.S. to resolve
the issue.
Malmström,
who confirmed to the BBC that the Commission is in the process of drafting a
response to Trump said, “We are looking at all possibilities to retaliate,
meaning we will also put taxes or tariffs on US imports to the EU,” but added
that the Commission will wait for a final decision and would take the issue to
the WTO if the US Congress follows through with implementing Trump’s new
protectionist measures.
According
to EU officials, 25% tariffs could apply on around €2.835 billion worth of
imports from the US. Brussels will likely target big names and products such as
Levi’s jeans, Harley-Davidson motorbikes and Jim Beam, a top producer of American corn-based whiskey
that is more commonly known as Bourbon.
Brazil,
Mexico, Canada, and Japan are following the EU’s lead and also preparing steps
to counter Trump’s potential trade war.
https://www.neweurope.eu/article/eu-commission-prepares-response-trumps-self-declared-trade-war/