EU says metal tariffs ‘prolong uncertainty’ after US holds off
BRUSSELS - Agence France-Presse
The European Union accused the United States on May 1 of prolonging “market uncertainty” with its decision to hold off on imposing controversial tariffs on metal imports from key global trading partners.
But after renewed fears of a trade war spooked Wall Street, Trump said he was holding off the levies, offering a 30-day reprieve to Canada, Mexico and the EU.The European Commission and economic powerhouse Germany both called for EU nations to be permanently excluded from the punishing tariffs.
“The U.S. decision prolongs market uncertainty, which is already affecting business decisions,” the commission, the EU’s executive arm, said in a statement.
Europe had lined up its own punitive tariffs on American imports, including iconic items like Harley-Davidson motorbikes, blue jeans and bourbon whiskey -- but for now, instead, negotiations will continue.
“We remain concerned about the impact of these tariffs on global trade and will continue to work with the EU on a multilateral solution to the global problem of overcapacity, as well as to manage the impact on domestic markets,” a government statement said.
Trump said on April 30 that the “necessary and appropriate means to address the threat to the national security” posed by the metal imports is to “continue these discussions and to extend the temporary exemption of these countries.”
Washington has “agreements in principle” with Argentina, Australia and Brazil, “the details of which will be finalised shortly,” a White House statement said.
“In all of these negotiations, the administration is focused on quotas that will restrain imports, prevent transshipment, and protect the national security.”
Extensions for Canada and Mexico had been expected, as Mexico City, Ottawa and Washington work on revamping the North American Free Trade Agreement.
But an extension for the EU was less of a foregone conclusion.
The EU’s three largest economies - Britain, France and Germany - held crisis talks on April 29 and the French presidency said afterwards they had agreed “the EU must be ready to act” if Washington presses ahead with the tariffs.
In a strident statement reacting to the 30-day extension, the EU’s executive arm said it was willing to continue dialogue but pointedly warned:
“We will not negotiate under threat.”