05:30 GMT +319 July 2019
Listen Live
    A man walks near US and European Union flags at the EU headquarters on May 15, 2017 in Brussels

    Zero Sum Game: The US Rolls Out ‘Trade War’ Ultimatum for Europe

    © AFP 2019 / JOHN THYS
    Business
    Get short URL
    14953

    Europe is concerned about a “trade quota” in which Washington demands the EU accept quotas on metal exports to the US.

    The Trump administration is insisting that Canada and the EU agree on quotas in exchange for a temporary redemption on tariffs for steel and aluminum exports that will be introduced May 1, Bloomberg reports.

    "We are asking of everyone: quotas if not tariffs," US Commerce Secretary Wilbur Ross said Friday.

    This way, the EU will face a choice: either give in to US demands or be met with new ‘penalty' tariffs, Bloomberg reports.

    "A trade war is a losing game for everybody," the edition quotes Belgian Finance Minister Johan Van Overtveldt saying. "We should stay cool when we're thinking about reactions, but the basic point is that nobody wins in a trade war so we try to avoid it at all costs."

    Europe considers unacceptable the US demand to lower the export of steel and aluminum to 90 percent of the last two years, according to a Bloomberg source in the EU.

    The US introduced 25 percent and 10 percent fees on steel and aluminum imports, respectively. At the same time, the White House halted these newly introduced tariffs for several countries until May 1.

    While several countries seek to negotiate permanent exemptions from the new trade rules, South Korea is reportedly the only nation that has been spared the duties, after securing a deal to revise its bilateral free-trade agreement with the US, Bloomberg noted.

    Related:

    Will Beijing Manage to Survive the US-Chinese Trade War?
    Iran's LNG Exports Jump as China, US Lock Horns in Trade War
    China and India to Boost Partnership Amid Washington-Beijing Trade War
    Tags:
    quotas, tariffs, ultimatum, trade war, Wilbur Ross, Europe, United States
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik