There’s a continued heightening heat between the Trump’s administration and the European Union. The administration has been allegedly planning to inflict taxes on steel and aluminum that is exported from the EU. There are allegations that these two products are unable to triumph in the trading recognition and satisfaction. According to a publication in the Wall Street Journal, the EU may be dropped from an exception to general taxes of 10% on imported aluminum, and 25% on steel products this coming Thursday.
According to the grapevine, this action has brought antagonism from European Union trade regulators. In retaliation, they have warned that imposition of tariffs will make them target American products as well. The heightening resistance between the US and Europe trades occurred on Wednesday after the US commerce secretary set a limit with the EU over Chinese trade negotiations. Wilber Ross, at a trade development in Paris, said that Europe is leaning on tariffs as a justification to decline trade discussions.
The Trumps administration in March imposed import tariffs to many of its trade partners who added friction in the trade unions especially the EU. In fact, the White House said that the US would impose $50bn in new duties. In response to the new trade rules, the European trade negotiators are open to discussions but stiff-necked on what they term as negotiations under threats. Sigrid Kaag, the Dutch foreign trade and development minister, has echoed that EU should benefit from the boundless exemptions. Also, she puts clear that just because China agrees to these new tariffs, they shouldn’t apply to them as well.
Mr Ross is scheduled to attend a talk with China this weekend for the second time regarding the same. However, administration officials have raised the concern of discontinuity of the discussions in case the different sides aren’t comprehensible on what to discuss. According to an article published in the Xinhua News Agency on China’s reaction on tariffs, the US is said to impose threats thus hurting its national credibility. The scheduled talks in China will determine the fate of ZTE Corp, the telecommunications giant in China.
The tariffs exemption has also strained the relationship between Trump and the Japanese Prime Minister, Shinzo Abe. The two are expected to meet at the White House in the coming days. Japan seems to face a significant impact from the metal levies of $440m yearly. A further hit is in the car industry where the Trump administration decided to launch a national security-related examination into automobile imports.