The EU is preparing the US response in “trade war”

The European Union will start to charge import duties at 25% on some US goods. This is a response to US tariffs imposed on steel and aluminum at the beginning of this month.

Such actions “a tooth for a tooth” can turn into a full-fledged “trade war”, especially if the President of the United States Donald trump makes good on his threat, promising to touch European cars.

The European Commission formally adopted a law imposing duties on goods in the amount of €2.8 billion ($3.2 billion) on goods from the States: steel, aluminium, agricultural products such as corn and peanuts, Bourbon, jeans and motorcycles.

“We don’t want to be in this position”, – reads the statement of the EU Commissioner for trade Cecilia Malmstrom. She added that “unilateral and unsubstantiated” the decision of the United States has deprived the EU of a choice.

She called the response of the EU are proportional and consistent with the rules of the world trade organization and said they will cancel them if Washington canceled its tariffs on metals. The export of steel and aluminium in the EU currently amounts to €6.4 billion.

Donald trump surprised the EU, Canada and Mexico tariffs of 25% for steel and 10% for aluminium in early June, eliminating the possibility of exemption from the payment of fees, which was introduced in March.

Canada announced that it would impose retaliatory tariffs on exports of $12.5 billion from July 1. Mexico set tariffs on American products, such as steel, pork, Bourbon, two weeks ago.

Some selected products are designed for state Republicans seeking to retain control of both houses of Congress in the upcoming November elections.

The EU also maintains reserves for possible rates from 10% to 50%, so after three years, they can impose another €3.6 billion on imports from the United States.

Germany in the crosshairs

The U.S. trade with Germany: 1997-2016 years.

Propaganda trade practices trump would have catastrophic consequences for the countries of the EU. American tariffs on metals is only the beginning, given that trump is interested in the decline in exports of European cars in the United States. The white house could go further, urging the EU to increase funding to NATO and demanded that Germany stopped the construction of oil and gas project with Russia.

Germany will suffer the heaviest losses in the U.S. and the EU. Manufacturing enterprises of Germany was always strong American competitors, which does not like trump. Team members trump can agree that it is time to present the lesson to the German giant manufacturers, when it comes to competition with the United States.

The EU must resist US. Peace and justice can be an overwhelming task, if not of readiness to fight. The EU, seeking only to kindness, they themselves will suffer from the actions of American troops.

Obviously, there is a difference between the US – EU and Sino-us relations. The political consequences of a potential “trade war” with China other. So few people from China believe that the EU will side with China in opposing the United States. The EU approved last protectionist efforts of Washington, putting pressure on China in the field of intellectual property rights and market access. China, the US and the EU pursue their own national interests. The situation makes it difficult for both parties to become allies for each other.

The administration of the tramp showed no respect for the rules established by the WTO. Europe and China are against the bullying of the US and its protectionist trade practices. If major economies do not intervene, I will not spare anyone, and trump will turn into a modern Genghis Khan, who invaded Eurasia.

China and the EU can cooperate on issues of Commerce, however, the two powers are required to maintain a strong position in confrontations with the United States. Both China and the EU should go to unreasonable concessions against the United States, as trump did not want to cooperate with the world and prefers to use the tactics of the siege associated with trade, for the conquest of foreign countries.

If each of unilateral tariffs of Washington will face a reliable counter, it will become an obstacle to protectionist agenda. Such reckless behavior will result in big losses for ordinary Americans and inflame an already volatile internal situation.

China has provided strong countermeasures to combat the rates of trump and will use them as a bargaining chip against the stock of Washington.

Shortly after the United States withdrew from the nuclear deal with Iran, they asked European companies to leave the country. Many European companies did the same thing against Chinese manufacturer ZTE smartphones. If Europe will continue to retreat, it would be in the role of a lifeless doll, a puppet controlled impulsive.

If the current multilateral trading system will disintegrate, the well-being of each member state of the EU will be in danger. So the EU needs to abandon the idea of a possible exemption from US tariffs and start preparing for the upcoming “trade war”.

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