TARIFFS FOR EVERYONE. Tariffs for EU

. The mood from Europe, where officials have refused to agree to a quota that would reduce their exports, appeared even darker. – By Todd Horwitz, Bubba Trading.

 

The Trump administration is reportedly planning to impose import tariffs on European steel and aluminum after finding no satisfaction in its effort to win trading concessions on the issue. An announcement dropping the EU from an exemption to global tariffs of 25% on imported steel, and 10% on aluminum, could come on Thursday, according to the Wall Street Journal.

The move is likely to bring retaliatory action from European Union trade regulators who have warned they will target American products as motorcycles, jeans and bourbon if additional US tariffs are imposed.

The mood from Europe, where officials have refused to agree to a quota that would reduce their exports, appeared even darker. “Hopefully, we will be able to have a positive agenda with the U.S. side, with no tariffs or quotas,” Cecilia Malmstrom, the European trade commissioner, told the European Parliament on Tuesday. “Realistically, however, we do not think we can hope for that.”

The Trump administration has insisted that trading partners either accept the tariffs or commit to voluntarily restraining their own metal exports with quotas. As the steel and aluminum tariffs went into effect in late March, South Korea agreed to restrain its metal shipments as part of a renegotiated with the United States. Last month, the administration said it had reached initial agreements with Brazil, Australia and Argentina to restrain their metal exports, and that it would temporarily exempt the European Union, Canada and Mexico as talks continued.

Officials in some EU member states are already angry at Washington over Mr. Trump’s decision to pull out of the Iran nuclear deal. Still, others, including some German officials, want to seek a solution that prevents economic damage. French President Emmanuel Macron said Wednesday the EU shouldn’t respond to pressure with weakness. “The day before an important decision I want to repeat this: Unilateral responses and threats of trade war resolve none of the serious imbalances in global trade,” Mr. Macron said at the gathering with Mr. Ross. “A trade war is always a war lost by everyone.”

Keep those stops tight
Todd “Bubba” Horwitz

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Financial Markets & Political Commentary

 

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Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.