Fears grow of global trade war

A GLOBAL trade war came a step closer last week, with the EU, the US and China now caught up in a tit-for-tat tariffs race.

China retaliated following the US announcement it would slap £50bn-worth of duties on Chinese goods, while EU governments agreed to a list of “counter-measures” to combat US steel and aluminium tariffs.

The measures, which include 25pc taxes on American orange juice, bourbon, jeans, motorcycles and peanut butter, and add up to €2.8bn.

They will apply either late June or early July, and more could follow in the coming years if the World Trade Organisation finds the US acted illegally by imposing the original steel tariffs.

EU leaders will plan how to handle a potential US trade war at their regularly scheduled summit in Brussels this week.

Meanwhile, the EU-Canada free-trade deal has hit another snag, with Italy’s far-right agriculture minister, Marco Centinaio, threatening to order parliament not to ratify it.

Belgium almost torpedoed the deal — known as Ceta — last year, and only agreed to it after winning additional safeguards.

Private courts

The government also took a case to the European Court of Justice over the new system of private courts (for investors’ disputes with governments), which they fear could infringe citizens’ rights. A hearing in the case is scheduled for June 26.

The EU this week also accused the US of protectionism after the Trump administration put tariffs on Spanish olives.

Californian olive growers say the EU offers its producers unfair subsidies under the Common Agricultural Policy.