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13 March 2018, 04:09 | Darnell Patrick
The EU says it will fight Donald Trump’s planned metal tariffs following the failure of talks to resolve the row
The ACC has asked Trump to reconsider the tariffs because they will drive up the cost of building chemical plants in the U.S.
The EU's top trade official has employed strong rhetoric as the row with US President Donald Trump over steel and aluminum tariffs heats up following fruitless talks.
Trump said in a tweet on Saturday the United States was ready to drop its tariffs if the European Union lowered its "horrific" rates on US products.
He once again threatened India and China with such a tax on March 9, saying, "We're going to be doing a reciprocal tax program at some point so that if China is going to charge us 25 per cent or if India is going to charge us 75 per cent and we charge them nothing".
Canada's Foreign Affairs minister in Mexico City talking NAFTA with her representatives from Mexico and the U.S. Freeland says she won't let American threats of revoking Canada's exemption from metals tariffs compromise our position at the negotiating table. House Speaker Paul Ryan, R-Wis., said he disagrees with the move, and other congressional Republicans are hoping to block the duties with legislative action.
The EU's executive arm hinted that the escalating rhetoric and punitive tariffs could eventually lead to a trade war between the biggest economies on the planet, which would hurt both sides. Trump's chief economic adviser, Gary Cohn, is resigning, reportedly because of his oppositions to the tariffs.
Trump left the door open to trading partners Canada and Mexico, as well as military allies, being exempt from the measures.
The EU and Japan held crunch talks with their United States counterparts in Brussels on Saturday hoping to get "clarity" on President Donald Trump's controversial new steel and aluminium tariffs. This has caused a negative reaction among many United States trading partners.
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As one after another foreign leader warns of countermeasures against the tariffs on steel and aluminium imports, Trump even dialled up the tone, going on to threaten to impose duties on European cars.
"Cherry-picking particular tariffs in one category, like looking just at vehicle tariffs on both sides, misses the whole picture, while not taking into account lower levels on other products does not give an accurate picture of tariffs in general", a Commission spokesman said.
In signing the order last week, the President made it clear that if Canada and Mexico made concessions during the NFTA negotiations, they would be exempted from the tariffs.
And Warner questioned whether tariffs will resurrect the U.S. steel industry the way Trump is boasting they will.
"An in-kind tariff by the United States' top ten trading partners would expose close to 42 per cent of total USA exports, leading to a widening in the trade deficit", they said.
Because of foreign competition, the Commerce Department said, the US steel industry has closed six oxygen furnace facilities and idled another four since 2000, representing more than half of such plants in the U.S. Brigitte Zypries, the German economics minister, wrote in a letter to Wilbur Ross, the United States commerce secretary, that Europe and America should work together to address the real problem: a global glut of steel production that has driven down prices.
Data last week showed that the US trade deficit had jumped to an over nine-year high in January, with the country's shortfall with China widening sharply. "It has a negative impact on the NAFTA talks".
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