The United States and the European Union (EU) have put on hold the trade war that has opposed them for several years and which was further accentuated when Donald Trump was in the White House. And, before Joe Biden’s visit to Brussels in June, they are multiplying the signs of appeasement. Thursday, May 20, during a meeting of European trade ministers in Brussels, the Twenty-Seven welcomed it. Just like the US trade representative, Katherine Tai, who chatted (virtually) with them for a little over an hour.
Earlier this week, a new step in improving relations between Washington and Brussels was taken. As a sign of good will, the Europeans have in fact decided to suspend, for a maximum of six months, the increase in customs duties that was planned on certain products. “Made in USA” – like Harley-Davidson motorcycles, Levi Strauss jeans or bourbon – from 1er June. The United States, for the moment, maintains its taxes on European steel and aluminum.
The case dates back to March 2018, when Donald Trump, citing national security reasons, decided to tax steel at 25% and aluminum from the EU at 10% (but also China, Turkey, India or even Russia). The Europeans then took several retaliatory measures. First, since Washington imposed customs duties on imports that represented 6.4 billion euros per year, they had decided to retort in the same proportions. 1er July 2018, a first series of new levies had been imposed on a list of products imported from the United States on European soil (for a value of 2.8 billion per year). And a second (out of 3.6 billion euros) was therefore, so far, scheduled for next month.
“They must withdraw these illegal taxes”
In addition, the American decision had created market distortions – Asian steel and aluminum producers, for example, had sought to compensate in Europe for the lesser outlets across the Atlantic – and the Europeans had also decided to tax all imports of these products. These “safeguard measures” have been retained and, in order to maintain the pressure on their partner, twelve Member States (France, Germany, Italy, Slovakia, Luxembourg, Finland, Hungary, Poland, Spain, Czech Republic, Belgium and Bulgaria) wish that they be extended beyond June 30, the date on which they are supposed to disappear.
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