EU and Mexico to hit back against Trump’s steel tariffs – business live

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US will impose steel tariffs on allies

A formal complaint by the EU at the WTO in Geneva is expected tomorrow, Friday.

In joint statement the French minister and German finance minister, Bruno la Marie and Peter Altamira, said they regretted the “unilateral decision” taken by the White House and backed the European Commission’s retaliatory response.

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Canadian prime minister Justin Trudeau is expected to speak at 1.30pm ET. In the meantime, we have Kathleen Wynne, the premier of Ontario, who has called Trump a “bully”, describing him as a “man who simply does not seem to get that his bluster and his bullying are costing real people real jobs”.

 The conservative business network backed by the wealthy industrialist brothers Charles and David Koch has also come out in opposition to the tariffs. Freedom Partners Chamber of Commerce and Americans for Prosperity warned there would be a tax increase on all Americans and would undermine the nation’s economy and low unemployment rates.

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Republican: ‘tariffs are hitting the wrong target’

Now for the reaction from Washington…

Kevin Brady, the Texas Republican chairman of the House Ways and Means Committee, has said the Trump administration is “hitting the wrong target” and officials will need to provide answers to Congress about the damage to US businesses.

“When it comes to unfairly traded steel and aluminum, Mexico, Canada and Europe are not the problem – China is. These tariffs are hitting the wrong target.”

Brady urged the administration to exempt allies from the new import tariffs. And he warned that administration officials “will need to come to Capitol Hill to provide answers about the indiscriminate harm these tariffs are causing our local businesses”.Continuing the denunciations of the US decision, Germany’s foreign minister Heiko Maas says the European Union “is ready to react accordingly with counter measure”.

Europe prepares to hit back and Mexico to target US goods

As Europe prepares to hit back with tariffs on a list of US exports worth €6.4 billion ($7.5 billion), Mexico’s economy ministry has said it will target several US goods in response, including some steel and pipe products, lamps, berries, grapes, apples, cold cuts, pork chops and various cheese products “up to an amount comparable to the level of damage” linked to the US tariffs. Canada is also expected to impose retaliatory measures, details of which are expected soon

Adam Marshall, Director General of the British Chambers of Commerce (BCC), called the US move “hugely disappointing” and warned that the tariffs “will hurt companies and communities in many areas of the UK, as well as their customers in the US”.

“The UK government must reach out to and support the many supply chain businesses that face becoming the ‘collateral damage’ of the Trump administration’s protectionist push. British ministers must also work hand in hand with the EU to avoid any further escalation, and to find a long-term solution.”

But he also warned that the US decision to impose punitive tariffs should serve as a reminder that self-interest looms large in trade negotiations.

“Ministers should reflect on this carefully before they pursue any future trade deal between the UK and the USA.”

More from Boffey:

Manfred Weber, the leader of the European People’s Party, the largest group in the European Parliament, and a key ally of the German chancellor, warned that treating the EU as the “enemy” would lead to US consumers hurting too.

He said: “Europe does not want a trade conflict. We believe in a fair trade regime from which everybody benefits. We have tried everything to make dialogue and mutual understanding prevail. If President Trump decides to treat Europe as an enemy, we will have no choice but to defend European industry, European jobs, European interests.”

But he warned his party would not accept “this highly regrettable decision without reacting. This will have consequences for the American people too. In a trade conflict there are only losers.”

The situation, he added, “has to be a wake-up call for us Europeans.”

“With the US closing in on itself, we should be bridge-builders and reliable partners for the rest of the world. Europe now has to act with a clear message and remain united, calm and proportionate.”

Gareth Stace, director of UK Steel, called the US decision “a bad day for the steel sector, for international relations and for free trade.”

He said it is vital that the EU and US continue discussions to find a way through the current impasse and reach an agreement that works for all parties.

But he called on the EU to forge ahead with safeguard action.

And from the Guardian’s political correspondent Jessica Elgot:

A UK government spokesman said they were “deeply disappointed” by the outcome.

“The UK and other European Union countries are close allies of the US and should be permanently and fully exempted from the American measures on steel and aluminium,” the spokesman said.

“We have made clear to the US government at the highest levels the importance of UK steel and aluminium to its businesses and defence projects. We will continue to work closely with the EU and US Administration to achieve a permanent exemption, and to ensure that UK workers are protected and safeguarded.”

May will raise the tariffs with Trump directly when the pair meet at the G7 in Canada next week, where the issue is likely to figure prominently. May has personally lobbied the US president repeatedly in recent weeks and months.

The Guardian’s Daniel Boffey from Brussels:

Brussels has been preparing a retaliatory hit on an array of US goods, both industrial and agricultural, ranging from Harley Davidson motorbikes to blue jeans and American bourbon. Ambassadors from the 28 member states were in immediate communication with the European Commission following the announcement from the Trump administration. Speaking at a conference in Brussels, Juncker said the EU would launch retaliatory action “in the coming hours”. “This is a bad day for world trade,” Juncker. “It’s totally unacceptable that a country is imposing unilateral measures when it comes to world trade. What they can do, we are able to do.”

source-theguardian.c

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