The trump administration might be forced to include some steel manufacturers from Germany who produce certain special types of steel form the import tariff on steel. This is because the firms that are dependent on such steel products could find it difficult to source such raw materials from the domestic steel industry, said a German minister.
The U.S. government would be put under pressure to leave out some of these companies manufacturing such special metals from the 25 per cent steel tariffs because those U.S. companies dependent on such special metals would be forced to raise their prices because of the tariffs and in case they are unable to source similar quality products form the domestic markets, said Germany’s Economy Minister Peter Altmaier in an interview published on Saturday.
The exemption that the European Union, Canada and Mexico had been granted by the Trump administration form the import tariffs on steel and aluminum was repelled on Thursday after the U.S. did not manage to secure favourable trade concessions from these trading partners – which are among the largest that the U.S. has.
The first to react of the imposition of the tariffs by the Trump administration was the EU which has taken the U.S. to the World Trade Organization challenging the imposition of the new tariffs and the claim by the Trump administration’s pretext of imposing the tariffs that the imports were a threat to the country’s national security.
“I assume that special steels produced in Germany will not be able to be easily replaced with U.S.-produced alternatives,” Altmaier told the Rheinische Post newspaper. “In this case, they would have to raise the prices of their products significantly.”
The minister said that if the reports of imposing tariffs on export of German and European cars into the U.S. turned out to be true, it would set a dangerous precedence and such measures might result in ultimately harming the economies of both the EU and U.S.
“A spiral of reciprocal tariffs would only produce losers,” he said, adding that the EU should remain united as it responds to the U.S. measures. “Then we can maybe prevent a trade war.”
Despite the enhancement of the trade tensions between the EU and United States, both the trading partners could make up the differences and reach a trade agreement, said Eveline Metzen, managing director of the American Chamber of Commerce in Germany.
“Americans and Europeans are gathering negotiating leeway,” she told the RND newspaper network. “I am optimistic that they will reach a deal in the end. Both sides can’t afford a true trade war.”
(Source:www.reuters.com)
The U.S. government would be put under pressure to leave out some of these companies manufacturing such special metals from the 25 per cent steel tariffs because those U.S. companies dependent on such special metals would be forced to raise their prices because of the tariffs and in case they are unable to source similar quality products form the domestic markets, said Germany’s Economy Minister Peter Altmaier in an interview published on Saturday.
The exemption that the European Union, Canada and Mexico had been granted by the Trump administration form the import tariffs on steel and aluminum was repelled on Thursday after the U.S. did not manage to secure favourable trade concessions from these trading partners – which are among the largest that the U.S. has.
The first to react of the imposition of the tariffs by the Trump administration was the EU which has taken the U.S. to the World Trade Organization challenging the imposition of the new tariffs and the claim by the Trump administration’s pretext of imposing the tariffs that the imports were a threat to the country’s national security.
“I assume that special steels produced in Germany will not be able to be easily replaced with U.S.-produced alternatives,” Altmaier told the Rheinische Post newspaper. “In this case, they would have to raise the prices of their products significantly.”
The minister said that if the reports of imposing tariffs on export of German and European cars into the U.S. turned out to be true, it would set a dangerous precedence and such measures might result in ultimately harming the economies of both the EU and U.S.
“A spiral of reciprocal tariffs would only produce losers,” he said, adding that the EU should remain united as it responds to the U.S. measures. “Then we can maybe prevent a trade war.”
Despite the enhancement of the trade tensions between the EU and United States, both the trading partners could make up the differences and reach a trade agreement, said Eveline Metzen, managing director of the American Chamber of Commerce in Germany.
“Americans and Europeans are gathering negotiating leeway,” she told the RND newspaper network. “I am optimistic that they will reach a deal in the end. Both sides can’t afford a true trade war.”
(Source:www.reuters.com)
