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EU says it is 'patient but prepared' in dealings with Donald Trump as trade war deadline looms

The EU is seeking exemption from steel tariffs imposed by the US president

Jon Stone
Brussels
Monday 30 April 2018 16:49 BST
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US president Donald Trump
US president Donald Trump

The European Commission has declared itself “patient but prepared” in its dealings with Donald Trump, as it moves to avert a trade war before a US-imposed deadline expires.

EU and US officials are scrambling to come to an agreement to exempt the 28-member bloc, including Britain, from steel and aluminium tariffs on imports to the US before the end of 1 May.

In March the EU secured a temporary reprieve from the tariffs pending further negotiations between the two sides after a visit to the US by Trade Commissioner Cecelia Malmström.

A spokesperson for the European Commission confirmed that Ms Malmström and trade secretary Wilbur Ross had a call scheduled ahead of the deadline but offered no further details.

“Contact at all levels between the EU and the US are on-going concerning the US tariff measures,” the spokesperson told reporters in Brussels.

“We are also in permanent contact with our member states, which we should be, and the only thing I can tell you prepared is that we are patient but we are also prepared.

The spokesperson said there would be intensive talks on 1 May, which is international labour day. The continued discussions follow a meeting between Angela Merkel and Mr Trump, where no new breakthrough was achieved.

The EU has pledged to hit back at a series of US goods if tariffs are imposed on it. Commission president Jean-Claude Juncker promised restrictions on stereotypically US products like Harley Davidson motorbikes, Bourbon whiskey, and Levis blue denim.

The Tata Steel plant in Port Talbot, Wales, would be hit by the tariffs

The right-wing US president, who has said trade wars are “good” and “easy to win”, imposed tariffs of 25 per cent on steel and 10 per cent on aluminium in March. China, which did not get an exemption, retaliated with tariffs on pork, fruit, and wine.

Around 320,000 workers are employed in the steel industry across Europe. The EU is the joint biggest provider of steel to the US along with Canada, with South Korea, Mexico, and Brazil trailing far behind.

Mr Trump has so far appeared to use the threat of tariffs to strong-arm other countries into bending their trade policies towards the US.

South Korea secured a permanent exemption for its steel after agreeing to a revision of its trade agreement with the United States. Canada and Mexico may also be able to secure exemptions before the deadline because they have opened talks on revising the NAFTA treaty, which Mr Trump has criticised.

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