Moment Of Truth For EU After U.S. Tariffs Strike

[pinto + 293]

After all the condemnation of U.S. tariffs on EU metal exports and calls for unity, the European Union still has two decisions to make - how hard to hit back at the United States and whether to engage in trade talks with Washington. The EU can act only by consensus, and its 28 members have different interests. Germany, by far the largest European exporter to the United States, is the most fearful of a trade war. Others, including France, are determined not to yield to what they see as U.S. bullying. The European Commission is considering safeguards to prevent a surge of imports into the bloc and will launch a legal challenge at the World Trade Organization after the EU producers were hit by U.S. tariffs of 25 percent on steel and 10 percent on aluminum. EU countries have also given broad support to its plan to set its own duties of 25 percent on 2.8 billion euros ($3.3 billion) of U.S. exports, including bourbon and motor-bikes to “rebalance” the U.S. tariffs on 6.4 billion euros of EU metals. EU leaders had agreed to offer Washington the prospect of discussions to open their markets wider, with a potential reduction of existing tariffs on industrial products such as cars, and cooperation on energy and regulation.
 

[jpZelabal + 63]

It's gonna be a battle of attrition....who will back down first?

[Pavel + 384]

U.S. allies reacting to tariffs on metal imports, with retaliatory tariffs of their own. Canada with $12.8 billion in tariffs. Mexico and EU threatening to do the same. Prices in U.S. for all sorts of things will be going up.

[Jan van Eck + 7,558]

4 minutes ago, jpZelabal said:

It's gonna be a battle of attrition....who will back down first?

Nobody.

[franco + 96]

OK. As we know US had alliance with EU, Canada. Why suddenly trade war even with the allies? I understand reasons for trade war with China but with allies?? Can't digest. It's a self defeating war. 

[Jan van Eck + 7,558]

1 minute ago, franco said:

OK. As we know US had alliance with EU, Canada. Why suddenly trade war even with the allies? I understand reasons for trade war with China but with allies?? Can't digest. It's a self defeating war. 

Self-defeating war?  OK, probably is, but so what?  You are not dealing with accountants with calculators.  These are politicians. Nothing has to be "rational."  Toss in the utter chaos inside the White House and Mr. Trump's impulsive personality, and don't be surprised that the results defy logic. 

In my view, the best response of "the allies" is to say and do nothing, just wait it out.  Canada sells a lot to the US, including minerals, oil and gas.  Do you want to provoke duties on those items also? 

Incidentally, the Canadian steel industry is not going to get hit as hard as you might think.  The US mills are already running near capacity, and specialty steels are not readily replaceable from India or China.  The US buyers are just going to have to eat it.  I predict even more Chinese dumping, especially of aluminum, and that is going to be a huge headache, especially for Europe. 

[Guillaume Albasini + 851]

Interesting chart from Eurostat website showing the goods imported by UE from US and exported by EU to US :

http://ec.europa.eu/eurostat/statistics-explained/index.php/USA-EU_-_international_trade_in_goods_statistics#EU_and_United_States_in_world_trade_in_goods

 

[Petar + 76]

EU trade chief Malmstrom says U.S. tariffs are "further weakening the trans-Atlantic relations."
EU Ambassador to U.S., David O'Sullivan says new Trump admin tariffs on steel and aluminum are "unjustified and illegal" & will result in European exports to the U.S. being more expensive
“It is totally unacceptable that a country is imposing unilateral measures when it comes to world trade.” - Jean-Claude Juncker, President of the EC

For now, verbal war..

[Rodent + 1,424]

7 hours ago, Petar said:

EU trade chief Malmstrom says U.S. tariffs are "further weakening the trans-Atlantic relations."
EU Ambassador to U.S., David O'Sullivan says new Trump admin tariffs on steel and aluminum are "unjustified and illegal" & will result in European exports to the U.S. being more expensive
“It is totally unacceptable that a country is imposing unilateral measures when it comes to world trade.” - Jean-Claude Juncker, President of the EC

For now, verbal war..

Who will they cry foul to, other than to the press? The WTO? If the WTO rubber stamps it "illegal", do they have any authority at all beyond that gesture?

[Guillaume Albasini + 851]

The EU has submitted the case to the WTO dispute settlement process.

http://www.miningweekly.com/article/eu-initiates-wto-case-against-us-steel-aluminium-tariffs-wto-official-2018-06-01/rep_id:3650

So Trump's next silly move could be to withdraw the US from the WTO

The US strategy is already to undermine the WTO.

"America is well advanced in its plans to throttle the WTO’s appellate court, where countries resolve disputes over everything from subsidies to anti-dumping tariffs. Washington’s strategy is to block the appointment of judges, which should bring the system to a halt next year."

https://www.politico.eu/article/wto-donald-trump-protectionism-brussels-fears-trump-wants-the-wto-to-fail/

 

TRUMP'S TO DO LIST

Already done :

2017 : US withdrawal from the Paris Climate Agreement

2018 : US withdrawal from the Iran Deal

To come :

2019 : US withdrawal from the WTO

2020 : US withdrawal from the UN

2021 : US withdrawal from Planet Earth

2022 : US withdrawal from the Galaxy

 

[Jan van Eck + 7,558]

2 hours ago, Rodent said:

Who will they cry foul to, other than to the press? The WTO? If the WTO rubber stamps it "illegal", do they have any authority at all beyond that gesture?

Only if an aggrieved party files a Complaint and asks for arbitration. You saw something similar happen with the US duties of close to 300% that were placed on Bombardier's new C-Series passenger aircraft.  Those got vacated in arbitration, albeit the panel was inside the US, not the WTO, but the same principle applies. 

[Capt. Lauren Dowsett + 8]

Come on everyone "We've" been getting screwed blue for many, many years!!  Hey you want to understand Trump? READ HIS BOOK ! The Art Of The Deal. Quite plain and really simple Fair Trade not all one sided against the US. 

I guess most everyone on this board is used to getting screwed, its been going on way to long and your used to it!!  Wake up a New Deal's in town and it's Trump!!

Read his book and maybe, maybe you all will understand!!

Capt. Lauren Dowsett

[Jouhou + 24]

Trump didn't write that book. At best, he dictated a few quotes.