The Union states will discuss about and vote, too, on the control of steel imports, from the main exporter countries to the EU, China, India, Russia, South Korea, Turkey and Ukraine.
EU countries are set to do so following the European Commission’s proposal of a “a combination of a quota and a tariff to prevent a surge of steel imports that is threatened, notably since the United States imposed levies on incoming steel and aluminum”, as Reuters reported.
Moreover, it is explained that “The quota would be a reflection of imports over recent years, with a 25 percent tariff set for volumes exceeding that amount, according to sources familiar with the proposal.”
The main aim towards which the EC, which controls the the trade policy for the 28-member EU, is working is to curb the import of Asian products into the bloc; if not prevented, experts say that due to their low prices, the EU could be flooded with steel.
Donald Trump’s decision to impose tariffs of 25% on incoming steel and 10% on aluminum from Canada, Mexico and the European Union was imposed on March 23. Regarding EU producers, it came into effect on June 1.
Reuters reads that “The investigation into steel is provisionally set to last nine months – meaning until the end of the year.
But, under Word Trade Organization (WTO) rules, the EU can impose “provisional safeguard” tariffs for up to 200 days if it makes a preliminary finding that increased imports have caused or are threatening to cause serious injury to its steel sector.”
According to the EU Trade Commissioner Cecilia Malmstrom the most possible time that provisional measures will come into effect is July.
Let us note that the bloc, in order to challenge the U.S. decision as far as this concerns it, it imposed tariffs on 2.8 billion euros ($3.3 billion) of U.S. imports, including bourbon and motor bikes, also launching a legal challenge at the WTO.
The European high official who spoke of a “potential war”
German Chancellor Merkel’s response to the overall situation initiated by Trump’s first punitive steps came on Wednesday, during an address to lawmakers at the Bundestag.
AFP wrote that the German leader “warned US President Donald Trump against unleashing an all-out trade war after he threatened to impose steep tariffs on cars from the European Union.”
“It is worthwhile to prevent this conflict from becoming a real war,” Merkel said, underlining that such a sensible reaction requires a bilateral “agreement” on the tactic of handling the issue.
Last but not least, there is voiced concern -in a way agreeing with Merkel’s thoughts but regarding the U.S., not the EU- over what Trump did, already from the States.
American businesses caught up in the tariff whirlpool
The president and CEO of the Salt Lake Chamber, and outgoing president and CEO of World Trade Center Utah, Derek Miller, spoke to Desert News saying that “We are in the war, it’s not a potential anymore. The war has begun. We hope that it’s a short and small trade war, but that remains to be seen.”
And he elaborates on his view by talking about the actual price hike that will not only affect the American businesses but the consumers as well.
“Like any business, they’ll charge what the market will bear. Across the board, almost overnight, steel prices went up by almost a third.
Anything that needs to be built (will) increase. Eventually, it will be passed on to the consumer.”
Derek Miller’s position agrees with most economic observers who had predicted exactly what is happening right now…. / IBNA