US isolated at G7 talks over tariffs
Washington has only a few days to avoid trade war among group members, France says
Top global economic leaders yesterday asked US Treasury Secretary Steven Mnuchin to convey their “unanimous concern and disappointment” about the metals tariffs imposed by Washington last week, wrapping up a heated G7 meeting in Canada.
“Ministers and Governors agreed that this discussion should continue at the Leaders’ Summit in Charlevoix, where decisive action is needed. The aim of this should be to restore collaborative partnerships to promote free, fair, predictable and mutually beneficial trade,” the group said in a summary statement written by Canada.
Canadian Finance Minister Bill Morneau told reporters that the finance ministers and central bank governors were unanimously upset at the harsh US steel and aluminum tariffs imposed by President Donald Trump’s administration.
French Finance Minister Bruno Le Maire said the US has only a few days to avoid sparking a trade war with its allies, and it is up to Washington to make a move to de-escalate tensions over tariffs.
Le Maire said the EU was poised to take counter-measures against the import tariffs. “We still have a few days to take the necessary steps to avoid a trade war between the EU and the US, and to avoid a trade war among G7 members,” Le Maire said.
“The ball is in the camp of the United States, it is up to the American administration to take the right decisions to smooth the situation and to alleviate the difficulties,” he added.
Mnuchin was the prime target of the criticism at the meeting.
The US tariffs of 25 per cent on imports of steel and 10 per cent on aluminum were imposed on Friday on Canada, Mexico and the EU.
US Commerce Secretary Wilbur Ross arrived in Beijing yesterday aiming to secure more Chinese purchases of US goods and energy, days after Washington intensified pressure in its dispute with China and infuriated allies with tariffs on metals.
Ross did not speak to reporters at his Beijing hotel yesterday afternoon. He was scheduled to have dinner yesterday with Chinese Vice Premier Liu He, Beijing’s lead negotiator in the trade dispute, at the Diaoyutai State Guest House, a US official said. The two were also due to meet today.
The visit by Ross follows renewed tariff threats last week against China by the Trump administration, and as US allies are in a foul mood with Washington after they were hit with duties on steel and aluminium.
The United States and China have threatened tit-for-tat tariffs on goods worth up to $150 billion (Dh550 billion) each.
Heavyweights
After it had appeared a trade truce between the two economic heavyweights was on the cards, the White House last week warned it would continue to pursue tariffs on $50 billion worth of Chinese imports, as well as impose restrictions on Chinese investments in the United States and tighter export controls.
Ross, who was preceded in Beijing last week by more than 50 US officials, was expected during the two-day visit to try to secure long-term purchases of US farm and energy commodities to help shrink a $375 billion trade deficit with China. US President Donald Trump has demanded that China take steps to reduce the gap by $200 billion annually by 2020.
The US team also wants to secure greater intellectual property protection and an end to Chinese subsidies that have contributed to overproduction of steel and aluminium. While many countries share US frustration with Chinese trade and economic practices, critics of US policy under Trump have warned that Washington risks alienating the European Union, Canada and Mexico with 25 per cent tariffs on steel and 10 per cent on aluminium.
On Friday, the United States’ closest allies attacked the Trump administration over the tariffs, with Japan calling the US action “deeply deplorable” during a meeting of G7 finance leaders. While US officials have sent conflicting signals during the dispute with China, one person familiar with planning for Ross’ visit said his aim was to keep dialogue going. Ross is “going there to tread water”, the person said, declining to be identified due to the sensitivity of the matter.