Brussels suspends contracted to US tariffs to steel and aluminum
The contracted advertised by the European Union (EU) to respond to the US tariffs on community steel and aluminum are suspended between Monday and July 14. The objective is to allow negotiations, officialized the European Commission (CE).
« The European Union has suspended its counterfeit in relation to unjustified commercial tariffs imposed by the United States in order to give time and space for negotiations between the EU and the US, » the community executive announced in a statement.
The EC, which has the competence of the community policy in the community space, adopted today-a week after the announcement of such a suspension, which was due to the US temporary pause in the application of reciprocal tariffs of 20% to the EU-two legal acts that impose and suspend their counterfeit until 14 July this year.
In total, the now suspended community response covers 21 billion euros from US exports. In addition to these, “the preparatory work on other EU countermearts” that may be adopted.
For Brussels, the new Washington fares are « unjustified and harmful, at the risk of causing economic damage to both parties, as well as the world economy. »
The EU prefers to dialogue with its transatlantic partner and, therefore, European Commerce Commissioner, Maros Sefcovic, is in Washington for meetings with its US counterparts to explore the land for a negotiated solution.
European Commission calculations report that new US tariffs can imply losses of 0.8% to 1.4% in the US Gross Domestic Product (GDP) by 2027. In the case of the EU, this percentage is 0.2% of GDP.
In the worst scenario -if tariffs are permanent or other contracted -the economic consequences will be more negative, up to 3.1% to 3.3% for the US and 0.5% to 0.6% for the EU.
Globally, the community executive estimates a 1.2% loss in world GDP and a 7.7% drop in world trade in three years.
