Date
19 October 2018
French Finance Minister Bruno Le Maire, seen here outside the Elysee Palace, says Europe will react collectively and firmly to US tariff moves, Photo: Reuters
French Finance Minister Bruno Le Maire, seen here outside the Elysee Palace, says Europe will react collectively and firmly to US tariff moves, Photo: Reuters

Europe will stand united against US tariffs, says France

France insisted on Sunday that Washington should expect united retaliation from Europe to further tariff increases, even as Germany signaled that it was prepared to negotiate, Reuters reports.

“If tomorrow there is an increase in tariffs, like in the car industry, our reaction should be united and strong to show that Europe is a united and sovereign power,” French Finance Minister Bruno Le Maire was quoted as saying.

“The question is no longer whether or not there will be a trade war, the war has already started,” Le Maire said at an economic conference in Aix-en-Provence, southern France.

“Let it be known that if we are attacked we will react collectively and we will react firmly.” 

US President Donald Trump hit the EU, Canada and Mexico with tariffs of 25 percent on steel and 10 percent on aluminum at the start of June, ending exemptions that had been in place since March.

Trump further escalated tensions last month with threats to impose a 20 percent import tariff on all EU-assembled vehicles.

With Germany’s powerful car industry facing the threat of higher US duties, German Chancellor Angela Merkel said last Thursday she would back a lowering of European Union levies on imports of US cars.

The US currently imposes a 2.5 percent tariff on imported passenger cars from the EU and a 25 percent tariff on imported pickup trucks. The EU imposes a 10 percent tariff on imported American vehicles.

Under World Trade Organization rules, the EU cannot lower import tariffs for only US-made cars. It would have to reduce them for all WTO members, Reuters pointed out.

While French carmakers would be little affected by US tariffs because they have little exposure to the American market, they would face stiff competition from Asian producers if EU tariffs were cut, a prospect that worries the French government, the report noted.

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RC

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