G20 sees three-way steel battle between EU, US and China
HAMBURG: While battles between police and protestors smoulder outside, leaders of the European Union (EU), US and China appear close to a trade war cliff edge at the G20 summit in Hamburg.
“We are already hearing that some parties are considering introducing protective measures against steel imports in the near future. If this does happen, the European Union will know how to respond appropriately,” European Commission chief Jean-Claude Juncker said before talks began Friday.
US President Donald Trump has vowed to slap tariffs on steel imports to protect American industry, and Washington could start levying the charges as soon as July 13. Customs duties on certain steel pipes alone would affect imports to the US worth US$152.6 million last year.
Germany ( US$38.8 million) and China (US$29.4 million) accounted for the biggest shares, followed by Switzerland, India, South Korea and Italy.
For its part, the EU has taken
We are already hearing that some parties are considering introducing protective measures against steel imports in the near future. If this does happen, the European Union will know how to respond appropriately. — Jean-Claude Juncker, European Commission chief
measures against some Chinese steel products, arguing that the government is providing unfair subsidies to manufacturers and distorting the market.
Washington’s steel threats have raised hackles in Europe, pushing trade disputes to the top of the agenda as heads of government from leading industrialised and emerging countries gather for the Germany-hosted G20.
The event usually ends with a joint communique setting out how leaders will cooperate on issues including global free trade, but details of the wording remained under intense negotiation Friday.
“Europe can’t be placed on the same level with unfair competition practices we don’t engage in” like China’s, the French president’s office said, vowing a “very speedy” reaction if the US targets the Old Continent’s exports.
EU leaders have quickly cobbled together a list of American products they could strike back at with sanctions, ranging from Kentucky bourbon to orange juice and dairy products, the Financial Times reported Friday.
Commission chief Juncker would not confirm the details, but insisted that Brussels was on high alert and would take only ‘days’ to react to US measures.
China, which produces around half the world’s steel supply, has been less talkative on the subject in Hamburg. But Beijing raged against the European sanctions last month, accusing Brussels of failing to understand its loan system. — AFP