Essay Sample on U.S. Tariff Threat: EU Determined to Fight Back

Paper Type:  Essay
Pages:  6
Wordcount:  1452 Words
Date:  2023-05-09

Following the United States Tariff Threat, Brussels is determined to fight back if the U.S. forces quotas on European steel. It will serve as a measure to tighten national security, according to the U.S. government. Cecilia Malmstrom, the E.U. trade commissioner, advised the government to stop their generalized tariff plan on steel imports, suggesting that if the move were executed, the outcome would be "absurd" for Europe. "As European Union, there is a lot that we benefit from the U.S., and they get much from us too. Therefore the implementation of such a plan will harm us, and our cohesion will be affected." Ms. Malmstrom said. "We need to revisit this plan to confirm that it has adhered to the WTO jurisdictions." The commissioner's sentiments come as a result of the trade rivalry expected to mushroom in if the United States government makes implements the act to distance the U.S industries from a stiff international competition that America feels is unfair to them. President Donald Trump has instructed a quick investigation into the effect of steel imports on U.S. national security. The U.S. government has said that the outcomes of the good dig-up were to be exposed this week. In other terms, White House staff officials said that the idea was to bring it out in a manner that depicts President's plan branded, "Made in America" in July.

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White house informed a congregation that a preliminary draft making rounds within the agencies for commenting. However, it was not revealed, what the provisional report contained and declined any interests in opposition. Robert Lighthizer, a high ranked trade expert in Trump's government, gave evidence last week to the congress, suggesting that the threat was not effective enough to stop the implementation of the plan. The expected U.S regulations have brought opposition from nations that are in Europe and are members of NATO unit that export steel such as Canada, Japan and Germany. The listed nations will be top victims in the case Washington applies the country's security measures. Ms. Malmstrom suggested that Brussels was likely to be forced to give feedback concerning any collateral damage incurred by the E.U. steel industries. She said that we should stop using terms like trade war because they are a threat to global unity and peace. She also added that the European Union was doing its best to ensure that the previous cohesion was maintained. Still, in the case they realized the plan would be implemented and affect their economy, then they will stand against it. But the European officials had no clarity on the likely scope. "I have to confess that we don't usually speak about retaliation loosely, but this is one of those occasions where there will be a strong reaction. "While the low price levels are certainly linked to imports and world overcapacity, the link to national security seems tenuous. In 2015, only 3 percent of U.S. steel demand was used for national defense and homeland security purposes," Brussels argued. Ms. Malmstrom said the E.U. was united. "We understand that the U.S. has concerns about overpopulation in China, but we don't think this is the right measure to take," she said. "We're willing to work with them as we already do in tackling the overcapacity in China and steel and other matters, but this would be very unfortunate." Separately, Ms. Malmstrom said talks continued in Tokyo on an EU-Japan free trade deal. "We are in a complicated phase of our negotiation and hope to close an agreement in principle very soon," she said. Commentary, the decision to impose stiff tariffs on steel by U.S. President Donald Trump has led to new problems between the United States and other nations, more specifically the Republic of Brussels. The President recently ordered a study on the industry under a clause of a 1962 law.

The law grants the leader of the republic, in case of a national security threat, the power to check certain imports. Other countries as well, besides Brussels, have vowed to retaliate against these changes such as China, Turkey, Mexico, and Brazil. The U. S government, alongside metal executives, made the announcements and gave several reasons as to why they were imposing the stiff tariffs. Trump claimed that the U.S had suffered disgraceful treatment from other nations and that the U.S could not make aluminum and steel, he vowed to rebuild the industry. The President also predominantly expressed that vast amounts of steel were being dumped in the United States by foreign countries killing the American industry and its workers. The U.S government imports four times as much steel as it exports from well over a hundred nations. Brussels has stated that they will retaliate should the Trump government enact quotas or tariffs on the European steel industry as part of his crackdown on imports.

The European Union commerce commissioner Cecilia Malmstrom has been particularly vocal about the tariffs. She has stated that the quotas could have severe consequences for Europe and urged the U.S government not to progress with the widespread tariff on steel imports. The protest has already begun from European NATO members concerning the impending restrictions. Among the nations mentioned by Ms. Malmstrom that could be forced to respond to any collateral damage caused by the restrictions was Brussels. The Nation mentioned that the decision by Trump's administration to carry out a' sweeping measure' was not warranted. The act, according to them, of targeting the steel industries of many nations due to national security reasons was not justified.

Brussels, under the united European Union, indicated that they would be willing to work with the U.S concerning steel overcapacity in China and that they understood the U.S concerns. However, they emphasized that imposing the tariffs would be a step in the wrong direction and would lead to poor working relations. The European Union has responded by cautioning of retaliatory rates on the U.S goods. The imposed rates could put thousands of European jobs at risk, according to the President of the European Commission Jean-Claude Junker. The exclusion of Mexico and Canada from the increased rates particularly would lead to more pressure on European states. Europe the being the largest exporter of steel to the U.S, has concerns about the accumulation cheap of steel in the continent that could flood the local market and put pressure on the local manufacturers. Ms. Malmstrom stated that a strong and equal response would meet such a move by the United States. She stated that the Nation could take three steps in dealing with the tariffs. It could protect the E.U. from steel diverted from the U.S by adding certain safeguards, approach the World Trade Organization concerning the matter or impose tariffs of their own on certain goods imported from America. Brussels recently publicized a selection of increased rates that they were set to impose on goods from America if the Trump administration followed through with its proposal of raising tariffs on all imported steel, leading to a potential trade war between the two countries.

Retaliation from Brussels though it may seem limited, for now, could have a devastating impact on domestic politics in America as well. Some of the goods they have targeted are states specific such as tobacco, bourbon, and motorcycles. The announcement by Brussels to enact their tariffs has led to many European leaders stressing that they do not intend to trigger a larger and wider trade dispute. Claiming that trade wars are terrible and easy to lose in response to Trump's earlier claim that they were easy to win and good. The two sides have been advised to engage in talks to try and reach a compromise that is suitable for both nations.

European Union Officials have met with their counterparts in the white house to discuss possible solutions and to try and cool down the tensions. The looming trade war could have severe consequences on both nations, according to the head of International Monetary Fund Christine Lagarde, and hence the recent talks between them. Despite numerous talks and threats of retaliation, the Trump administration seems adamant about imposing the tariffs. The American President has emphasized that he will not back down. At the same time, Brussels has opted to enact its proposed quotas and tariffs on American goods. Should the two sides not agree soon, a trade war is inevitable. While the doors of compromise have been left, open pressures are still increasing in Europe.


E.U pledges to fight back on Trump tariffs as trade war looms (2018, March 7), The New York Times. Retrieved from

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Essay Sample on U.S. Tariff Threat: EU Determined to Fight Back. (2023, May 09). Retrieved from

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