According to German Chancellor Angela Merkel, Europe is on the brink of a trade war with the United States. Washington must exempt the European Union from import tariffs which are imposed on the other countries in the world if the trade war is to be avoided. Merkel said that she has support from British Theresa May and French Emmanuel Macron.
The US imposed the aluminum and steel tariffs on China and Canada, and so far, Europe has been exempt from these. However, this is just a temporary measure, and it ends on Tuesday. Neither Macron nor Merkel managed to convince Donald Trump to extend the exemption. Merkel stated that Europe was “resolved to defend its interests within the multilateral trade framework.” She also added that all three leaders (May, Macron, and Merkel) “agreed that the US ought not to take any trade measures against the European Union.”
Merkel didn’t talk about specific steps which would be taken should the United States impose trade tariffs. The way China reacted was a major hit on the United States trade. They placed £70bn worth of its own tariffs on more than 120 American goods. Some of the products include rolled steel bars, wine, pork and scrap aluminum.
Before he met with Trump, Macron told Fox News: “You don’t make trade war with your ally. It’s too complicated if you make war against everybody. You make trade war against China, trade war against Europe, war in Syria, war against Iran. Come on, it doesn’t work. You need allies. We are an ally.”
Source: independent.co.uk
