The trade war across the world continues to escalate as the EU retaliated to President Donald Trump’s decision to impose duties on European aluminum and steel products. The European Unions announced that starting in July, they will impose tariffs on $3 billion worth of imported U.S. goods.
Cecilia Malmström. EU Commissioner for Trade said that the response was due to the United States’ illegal decision to place tariffs on European steel and aluminum exports. The commission referred to the World Trade Organization’s rule that states it allows counter-tariffs. The list submitted to the WTO adds a whopping 25 percent tariff on all United States aluminum and steel imports. The EU is safeguarding their interests by adding duties to more than 100 items. These include cranberries, orange juice, motorcycles, peanut butter, fishing vessels, plasma cleaner machines, and bourbon.
The response was due to President Donald Trump’s decision to place a 25 percent tariff on steel along with a 10 percent tariff on aluminum imports from Mexico, the EU, and Canada due to national security concerns. Trump campaigned on the issue that there are higher duties on U.S. goods exported than the tariff the United States places on imports. He told the Commerce Department that they needed to use the Trade Expansion Act to determine how importing steel and aluminum impacts national security last April.
Commerce Secretary Wilbur Ross, said that the study determined that the imports impaired national security due to excess production in China and steel employment in the United States dropping by nearly 1/3. They recommended placing a global tariff on imports for aluminum and steel for all countries to increase domestic production for long-term sustainability.
The United States International Trade Commission’s statistics show that imports of steel peaked in 2014 and had been cut by 22 percent in 2017.
The Aerospace Industries Association exclaimed fear over how the trade war and tariffs would impact the entire industry. Remy Nathan, a spokesman for the organization, expressed that they understood the need for fair trade, but feared retaliation from other countries on United States aerospace products, which would devastate the industry because they rely heavily on steel and aluminum and exports to remain profitable. They hope the administration will work out a negotiation that economically benefits the U.S. aerospace industry and its employees, Nathan said in response to NBC News’ request for comment.