EU Is Relieved Over Temporary U.S. Tariff Exemption--Update
March 22 2018 - 6:50PM
Dow Jones News
By Emre Peker and Valentina Pop
BRUSSELS -- European Union leaders welcomed signals Thursday
that the Trump administration would sign off on temporary waivers
from steel and aluminum tariffs, averting a trans-Atlantic trade
war, for now.
"Only reasonable that EU seems to be omitted from tariffs based
on national security grounds given that EU and US are close
allies," tweeted Danish Prime Minister Lars Lokke Rasmussen during
a meeting of EU leaders in Brussels. .
U.S. Trade Representative Robert Lighthizer told the Senate on
Thursday that the tariffs, which take effect Friday, will be
"paused" for the EU, Australia, Argentina, Brazil and South
Korea.
Seeking to counter the global glut driven by Chinese
overcapacity, President Donald Trump has cited national security as
the justification for imposing the import tariffs -- 25% on steel
and 10% on aluminum.
"Many countries are calling to negotiate better trade deals
because they don't want to pay the steel and aluminum tariffs," Mr.
Trump said as unveiled $50 billion in tariffs targeting China in a
separate set of trade measures--and ahead of his expected waiver
for the EU. "We're just starting a negotiation with the European
Union, because they're really shut out our country."
The exemptions for the EU come after intense European lobbying
to avoid an escalating trade spat between the longstanding allies.
European Trade Commissioner Cecilia Malmstrom rushed to Washington
this week to secure a waiver in meetings with counterparts,
including Mr. Lighthizer and Commerce Secretary Wilbur Ross.
EU officials pointed out, however, that the temporary exemption
prolongs uncertainties in the trans-Atlantic relationship.
"There still is one point we need to clarify -- is the exemption
conditional and if so what are these conditions," Belgian Prime
Minister Charles Michel said. "We have to see how it's formulated.
The devil is sometimes in the details."
In exchange for a waiver, EU officials have committed to
establishing a working group with the U.S. that would explore ways
to address bilateral trade tensions.
Mr. Trump has repeatedly singled out Germany's trade surplus
with the U.S. and threatened levies against European cars. The U.S.
has blocked access for agricultural products from some EU members
for years, Ms. Malmstrom said, citing it as an "irritant" that the
bloc would like to discuss with Washington. EU officials didn't
elaborate on U.S. demands.
"We are not negotiating under threat," Ms. Malmstrom said. "But
we are always willing to talk about issues of common concern."
Some European capitals signaled an openness to fix trade
disputes with the U.S. An official in Berlin warned that while the
immediate tariffs threat could be skirted, Mr. Trump hold the issue
like the "sword of Damocles" over the EU.
An adviser to French President Emmanuel Macron said Thursday
that the EU would actively combat Chinese overcapacity with the
U.S. and consider addressing other trade issues.
"Working on one-off subjects in bilateral EU-U.S. relations is a
possibility," the French adviser said.
But European officials broadly cautioned against entering into a
comprehensive negotiation or effort to revive the effectively
frozen Trans-Atlantic Trade and Investment Partnership talks
between Washington and Brussels.
The U.S. and the European Union already impose relatively low
tariffs, and trade between them has soared, though the Trump
administration blames some EU duties for increasing the U.S. trade
deficit.
EU leaders delayed their discussion on the bloc's trade policy
during the summit, as they awaited confirmation from Washington
that the EU will be exempt.
"As long as we have it, we are relieved," said a senior EU
official, who was in the room where EU leaders met Thursday for a
two-day summit.
--
Bojan Pancevski
in Berlin and Will Horobin in Brussels contributed to this
article.
Write to Emre Peker at emre.peker@wsj.com and Valentina Pop at
valentina.pop@wsj.com
(END) Dow Jones Newswires
March 22, 2018 18:35 ET (22:35 GMT)
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