Germany hopes for end to EU-US trade spat

> Trump gives Brussels until Friday to negotiate a permanent exemption from import tariffs on steel, aluminium products

BRUSSELS: German Economy Minister Peter Altmaier expressed hope on Monday for a breakthrough with the United States ahead of a deadline this week for Washington to increase import tariffs for steel and aluminium imports from the European Union.

US President Donald Trump has given Brussels until Friday to negotiate a permanent exemption from import tariffs of 10% on steel and 25% on aluminium products.

The EU has said it will not negotiate under pressure, but has offered to discuss trade liberalisation with Washington if granted a permanent exemption.

“We are at the beginning of a decisive week,” Altmaier said on Monday, noting that he and EU Trade Commissioner Cecilia Malmstrom would conduct “intensive” talks with US Commerce Secretary Wilbur Ross in Paris today, at a meeting of the Organisation for Economic Cooperation and Development.

Between now and then, he said efforts would be under way to discuss a deal that is “in the interest of both sides.”

“For me, that means trying to avoid higher tariffs – if at all possible,” he added.

In return, the EU would be prepared to find common ground with Washington on issues such as trade in industrial goods and the recognition of standards, Altmaier said.

German Chancellor Angela Merkel also signalled her willingness to enter into talks with the US on Monday. It was important to find the right answer, Merkel said at a congress in Berlin, likening the trade tariffs dispute to the ancient Greek story of the “Sword of Damacles,” in which the character is forced to live in constant danger with a sword hanging over his head.

The EU has threatened to impose punitive tariffs on a range of iconic US products – including whiskey, motorbikes and jeans – in response to any higher steel and aluminium duties.

Meanwhile, Washington is considering whether tariffs on car industry imports could be justified by national security concerns – the argument invoked for the steel and aluminium tariffs. – dpa