Global trade war fears grow

PRESIDENT Donald Trump’s administration is planning to impose tariffs on European steel and aluminum imports after failing to win concessions from the European Union, a move that could provoke retaliatory tariffs and inflame trans-Atlantic trade tensions.

US and European officials held last-ditch talks in Paris yesterday to try to avert a deal, but hopes are low and fears of a trade war are mounting.

“Global trade,” France’s finance minister told US Commerce Secretary Wilbur Ross. “is not about who attacks whom, and then wait and see who is still standing at the end.”

The tariffs areexpected to go into effect on the EU with an announcement before today’s deadline, said two people familiar with the discussions.

The administration’s plans could change if the two sides are able to reach a last-minute agreement, said the people, who spoke on condition of anonymitys.

Ross told Le Figaro newspaper that the announcement was expected yesterday, likely after markets closed.

Trump announced in March that the US would slap a 25% tariff on imported steel and a 10% tariff on imported aluminium, citing national security interests. But he granted an exemption to the EU and other US allies; that reprieve expires today.

“Realistically, I do not think we can hope” to avoid either US tariffs or quotas on steel and aluminum, said Cecilia Malmstrom, the European Union’s trade commissioner.

Even if the US were to agree to waive the tariffs on imported steel and aluminium, Malmstrom said, “I expect them nonetheless to want to impose some sort of cap on EU exports.”

Malmstrom was meeting US Trade Representative Robert Lighthizer in Paris yesterday among other international trade chiefs.

If the US moves forward with its tariffs, the EU has threatened to impose retaliatory tariffs on US orange juice, peanut butter and other goods in return.

Fears of a global trade war are already weighing on investor confidence and could hinder the global economic upturn.

European officials argue that titfor-tat tariffs will hurt growth on both sides of the Atlantic.

French Finance Minister Bruno Le Maire called the US tariffs unjustifiable and dangerous. “This will only lead to the victory of those who want less growth.”

The Trump administration is also investigating possible limits on foreign cars in the name of national security. – AP