SOFIA, Bulgaria The European Union has called on U.S. President Donald Trump’s administration to stop threating it with tariffs on steel and aluminum, saying Thursday it is prepared to discuss trade but not at gun-point.
In March, Trump slapped tariffs of 25% on steel imports and 10% on imported aluminum, but granted the 28 EU countries a temporary exemption until June 1. He also temporarily exempted big steel producers Canada and Mexico, provided they agree to renegotiate a North American trade deal to his satisfaction.
“It’s Europe’s economic sovereignty, and what we are demanding is that we are exempted without conditions or time limits,” French President Emmanuel Macron said in Bulgaria, where EU leaders have gathered for a summit with Balkans countries.
Convinced that the U.S. move breaks global trade rules, the EU has drawn up a list of “rebalancing” duties worth some 2.8 billion euros ($3.4 billion) to impose on U.S. products if it is not permanently exempt. It has vowed not to negotiate under threat.
“I don’t think we have to consider this or that, when it contravenes the laws of international trade,” Macron said.
More: Farm income could be lowest in 12 years, falls by more than half
More: President Trump: ‘No folding in trade negotiations with China
Opinion: Wake up Congress, our NAFTA partners are ramping up trade in Europe and the Pacific Rim
French President Emmanuel Macron, left, is greeted by Bulgarian Prime Minister Boyko Borissov as he arrives for a dinner with EU and Western Balkan heads of state at the Sofia Tech Park in Sofia, Bulgaria, Wednesday, May 16, 2018. (Photo: Stoyan Nenov, AP)
But he added: “We can improve things, in a peaceful setting.”
German Chancellor Angela Merkel echoed his remarks.
“We have a common position: we want an unlimited exemption, but are then prepared to talk about how we can reciprocally reduce barriers for trade,” she told reporters in the Bulgarian capital Sofia.
Should the exemptions be dropped, the EU stands ready to deepen trans-Atlantic energy cooperation, notably on liquefied natural gas, improve reciprocal market access for industrial products and work together to reform the rules of the World Trade Organization.
The EU rejects Trump’s assertion that the tariffs are needed for U.S. national security and sees them as protectionist measures meant to boost local businesses. Most EU countries are U.S. allies in the world’s biggest security organization, NATO.
Geir Moulson in Berlin contributed to this report.
Britain and the European Union will start talks this week on their future trade relationship after Brexit. As Ciara Lee reports, with no substantial progress on the Irish border conundrum, negotiations could be challenging. Video provided by Reuters Newslook