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.