Transatlantic war of words as Trump tariffs planned within days
WASHINGTON and European Union (EU) — the world’s two largest economies — were on an accelerating collision course on Wednesday as Donald J. Trump’s administration vowed to unveil new tariffs on steel and aluminum within days, and Brussels readied to retaliate.
As the White House forged ahead with Mr. Trump’s nationalist economic agenda — triggering howls of protest from fellow Republicans, a walkout by a top presidential aide and a market sell- off — European leaders warned the US president against starting a trade war.
The sparring came just six weeks after Mr. Trump’s conciliatory words at the World Economic Forum in Davos, where he pledged that his “America First” vision did not mean “America alone.”
White House press secretary Sarah Sanders sought to calm nerves, saying a detailed decision would come by the end of the week on the tariffs — whose sudden announcement by Mr. Trump last week opened a chasm among his staff, with economic advisor Gary Cohn quitting Tuesday following a pitched internal battle.
With Mr. Cohn’s exit reverberating through global markets fearful the world could backslide on trade, Trump Cabinet members appeared on television to make the president’s case, with Commerce Secretary Wilbur Ross insisting the US was not “looking for a trade war.”
“We’re going to have sensible relations with our allies,” Mr. Ross told CNBC, claiming Mr. Trump’s policy was well “thought through.”
But in Brussels, the bloc wasted no time in outlining planned retaliatory measures on targeted American exports — from steel, industrial and agricultural items to flagship products such as jeans and motorbikes, peanut butter and bourbon — to be rolled out if the US makes good on its threat.
“Trade wars are bad and easy to lose,” EU President Donald Tusk told a news conference Wednesday, directly rebuffing Mr. Trump’s assertion last week they were “good and easy to win.”
Warning of “a serious trade dispute” between Washington and the rest of the world, Mr. Tusk said leaders of the bloc would hold emergency talks on the issue on March 22-23.
EU Trade Commissioner Cecilia Malmstroem doubled down, saying a full- on transatlantic trade war was “not in anybody’s interests.”
“A trade war has no winners,” Sweden’s Ms. Malmstroem told reporters after the European Commission discussed the tariffs.
“We should be very careful with that word... there are only losers in that, and that’s why we will respond in a proportionate and balanced way.”
‘THOUSANDS’ OF JOBS AT RISK
The EU is holding fire on its reprisals for now — as Mr. Trump has yet to sign into effect his aggressive plan, having floated 25% tariffs on steel and 10% on aluminum to correct what he calls unfair competition for US industry.
— AFP