The EU should not engage in a trade war, but must be ready to defend its citizens, MEPs said in a debate on planned US trade restrictions.
Political groups condemned US plans to impose new tariffs on steel and aluminium imports, on “national security” grounds, as unjustified. The debate showed wide support among MEPs for seeking a peaceful solution with the US and together tackling the underlying causes of global steel overcapacity and unfair trade practices by certain countries. [...]
Many speakers also called for EU-wide unity to protect citizens and warned member states against seeking individual exemptions. However, a few MEPs countered that the EU customs union is also protectionist, and described US President Donald Trump’s efforts to protect US steel industry workers as legitimate.
Commission Vice President Jyri Katainen said he expected that the EU, as a strategic ally, would be excluded from the tariffs as EU exports do not harm the US. He announced that the EU and the US had started working together on global overcapacity and this work would intensify soon.
Trade Commissioner Cecilia Malmström said the EU neither wanted an escalation, nor shared the view that trade wars are easy to win. But if EU exports are not excluded from the scope of the US measures, a “firm but proportionate response” should follow, she said. [...]
Full press release
Related: Speech by President Juncker at the Plenary Session of the European Parliament ahead of the European Council meeting of 22 and 23 March 2018
Statements by Vice-President Katainen and Commissioner Malmström at the European Parliament plenary debate: US decision to impose tariffs on steel and aluminium
Related analysis on Bruegel: U.S. steel and aluminium tariffs: how should the EU respond?
Related article on The Telegraph: Liam Fox says EU to coordinate UK response to Trump tariffs
Related article on EurActiv: EU warns UK not to seek unilateral exemptions from Trump’s tariffs
Related article on City AM: Economists predict $500bn hit to global growth if trade war escalates
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