EU: Business hit by Trump tariff tirade

GERMANY SAYS LEVIES DO NOT HELP EITHER SIDE

The European Commission said yesterday that US President Donald Trump’s decision not to impose steel and aluminium tariffs on the European Union for now prolonged business uncertainty and the EU should get a permanent exemption.

The White House announced on Monday that Trump had extended a temporary reprieve from the tariffs for the EU, Canada and Mexico until June 1, just hours before they were due to come into force. He also reached agreements for permanent exemptions for Argentina, Australia and Brazil, it said.

The Commission, which coordinates trade policy for the 28 European Union members, acknowledged Trump’s decision but said the EU should be permanently exempted from the tariffs since it was not the cause of overcapacity in steel and aluminium.

“The US decision prolongs market uncertainty, which is already affecting business decisions,” the Commission said. Germany, whose trade surplus has attracted criticism from Trump, said it expected a permanent exemption.

“I am firmly convinced that in the interests of jobs in Germany, in Europe and in the USA, we need a long-term provision and that raising tariffs is the wrong way,” German Economy Minister Peter Altmaier said, urging more talks with Washington.

France said it agreed there was overcapacity in the steel and aluminium industries but said the EU was not to blame and should be exempted permanently from the tariffs so the overcapacity issue could be addressed in talks.

“We are ready to work with the USA and other partners to deal with those issues, and to develop fast and appropriate solutions,” the French finance and foreign ministries said.

Britain’s trade minister Liam Fox said he was delighted, saying hitting British imports made no sense.

EU Trade Commissioner Cecilia Malmstrom would continue talks with US counterparts, Commerce Secretary Wilbur Ross and Trade Representative Robert Lighthizer, the Commission said.