Published: Sat, April 13, 2019

European Union takes step towards trade talks with America

European Union takes step towards trade talks with America

While the proposed tariffs, which would be subject to arbitration by the World Trade Organization (WTO), would result in increased costs for the European Union agriculture sector, among other sectors, U.S. consumers could also face higher prices. "It will soon stop!" he wrote to his almost 60 million Twitter followers.

The proposed tariffs were met with unfavourable responses from various quarters, including Canadian Prime Minister Justin Trudeau, who called them an "affront" to the relationship between the two regions, while European Union trade commissioner Cecilia Malmström said that it was a "bad day for world trade". "The exact impact on the market will depend on the final list of dairy products covered (if any) and the amount of the tariffs", he says.

Germany wants to begin the motor vehicle talks to prevent USA tariffs on Volkswagen, Mercedes maker Daimler and BMW.

Le Maire already pleaded on Tuesday for an amicable solution with the United States and was scheduled to meet with US Trade Representative (USTR) Robert Lighthizer.

However, the proposal to impose the new US$11 billion round of tariffs is going through arbitration by the WTO, the results of which are expected this summer.

The Trump administration's record of European goods to tax comprises the types of aircraft and trucks Airbus makes but also a vast array of European exports: famous cheeses like Stilton, Roquefort and Gouda, wines and oysters but also more obscure exports like ceramics, knives and pajamas.

Even the US and EU have since July been in talks to scale back the tariffs, together with Trump holding out the larger threat of slapping tariffs on European automobiles - a massive business in the area - should the negotiations not return a outcome.

"We're still in the same tariff world that we were a year ago", said Wendy Cutler, a former senior U.S. trade negotiator now at the Asia Society. NY based Bloomberg reported on Friday that the tariffs will be worth $11.5 billion (€10.2 billion).

Whether the US gets the legal right to execute the new tariffs will depend on a ruling by the WTO, a company located in Geneva that places the rules for global commerce and also settles disputes. In another instance, the WTO has ruled that Boeing got a small number of illegal support from the state of Washington worth a $100 million a year.

The U.S. announcement also comes just as Boeing is facing broad challenges within the global grounding of its 737 Max industrial jet amid worries that technical issues might have contributed to two crashes in five weeks.

Shares of Airbus were dealing 2.3 percent lesser after the tariffs were advanced.

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