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US Tariff Delay Not Enough for EU Seeking Other Solutions

The European Union remains unsatisfied after the White House’s move to extend a decision on metal tariffs.

President Donald Trump decided Monday to delay until June 1 a decision regarding the imposition of a 25 percent levy on steel imports and a 10 percent duty on aluminum for Mexico, Canada, and the EU. The European Union, which has been temporarily exempted from the tariffs, said the delay prolongs uncertainty for businesses, which are already suffering from the U.S. plans.

“The U.S. decision prolongs market uncertainty, which is already affecting business decisions. The EU should be fully and permanently exempted from these measures, as they cannot be justified on the grounds of national security,” the European Commission, the executive arm of the EU, said in a statement Tuesday morning.

The EU’s argument is that it’s not causing overcapacity in the metal industry and, as a result, it should not be punished with higher tariffs.

“On the contrary, the EU has over the past months engaged at all possible levels with the U.S. and other partners to find a solution to this issue,” the statement said.

via CNBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza