Europe Says It's Ready for a Trade War If Pressured by the U.S.




 

(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here.

France's finance minister said he doesn't want the European Union to become the latest front in the global trade war, but that the bloc would hit the U.S. with sanctions if a settlement isn't reached in a long-running dispute over aircraft aid.

"We are all aware of the dramatic consequences of this trade war between China and the U.S. on the level of growth,'' minister Bruno Le Maire told reporters in Luxembourg on Thursday. "Do we really want to add a trade war between the U.S. and Europe to the Chinese and American trade war?''

The World Trade Organization gave the U.S. the go-ahead as soon as this month to impose tariffs on about $7.5 billion of European exports annually in retaliation for illegal government aid to Airbus SE. The EU has said that it will retaliate against any Airbus-linked tariffs when the WTO rules early next year on a similar dispute over subsidies the U.S. supplied to Boeing Co.

And while the EU's top trade negotiator, Cecilia Malmstrom, said she's hopeful a settlement can be reached that would avoid a tit-for-tat tariff escalation, the bloc has already published a preliminary list of U.S. goods -- from ketchup to video-game consoles -- being targeted in a $12 billion plan for retaliatory levies related to the Boeing case.

"I'm still in favor of a settlement,'' Le Maire said. "But the American administration must be aware that if there is not a settlement, Europe will not have any other choice but to retaliate and to put sanctions.''

"It's not in the interest of Europe to enter into a trade war with the U.S. and I strongly believe too that it's not in the interest of the U.S.,'' he said.

--With assistance from Viktoria Dendrinou, Nikos Chrysoloras and Caroline Connan.

To contact the reporters on this story: Maria Tadeo in Madrid at mtadeo@bloomberg.net;Stephanie Bodoni in Luxembourg at sbodoni@bloomberg.net

To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Richard Bravo, Nikos Chrysoloras

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

COMMENTS

More Related News

UN set for showdown over US Iran arms embargo push
UN set for showdown over US Iran arms embargo push
  • World
  • 2020-08-08 02:19:05Z

The UN Security Council is set next week to roundly reject a US resolution to extend an Iranian arms embargo, diplomats say, setting up a lengthy showdown with repercussions for the Iran nuclear deal. Secretary of State Mike Pompeo announced on Wednesday that the United States would put forward its long-awaited resolution despite ardent opposition from Russia and China. "The resolution takes a maximalist position on Iran," one diplomat told AFP.

Rare syndrome linked to COVID-19 found in nearly 600 U.S. children: CDC
Rare syndrome linked to COVID-19 found in nearly 600 U.S. children: CDC
  • US
  • 2020-08-07 21:40:49Z

Multisystem inflammatory syndrome (MIS-C) is a rare but severe condition that shares symptoms with toxic shock and Kawasaki disease, including fever, rashes, swollen glands and, in severe cases, heart inflammation. It has been reported in children and adolescent patients about two to four weeks after the onset of COVID-19. With rising COVID-19 cases, there could be an increased occurrence of MIS-C, but this might not be apparent immediately because of the delay in development of symptoms, said the report's authors, including those from the CDC's COVID-19 response team.

Will Macron Deliver on His Lofty Promises to Help Beirut?
Will Macron Deliver on His Lofty Promises to Help Beirut?
  • World
  • 2020-08-07 12:03:12Z

(Bloomberg Opinion) -- There were moments during Emmanuel Macron's visit to Beirut on Thursday when it seemed that the French president was in a mosh pit, crowd-surfing over waves of adulation and anger: The adulation was for him, and far more than he might reasonably expect from a Parisian throng; the anger was for the entire Lebanese political class, who are being collectively blamed for the devastating blasts that shattered much of the city on Tuesday.    It is easy enough to cavil, as some have, that Macron's walkabout in the Gemmayzeh neighborhood was political theater. He was always going to get a friendlier reception in a Francophile quarter of East Beirut than, say, in the...

U.S. prosecutors charge former Citgo executive in bribery probe
U.S. prosecutors charge former Citgo executive in bribery probe
  • US
  • 2020-08-06 21:11:56Z

U.S. prosecutors charged a former Citgo Petroleum manager with accepting $2.5 million as part of a scheme to bribe officials with the U.S. refiner and its Venezuelan parent to win business contracts. Jose Luis De Jongh Atencio, 48, was indicted by a federal grand jury last month with money-laundering and conspiracy charges, according to an indictment unsealed on Thursday. De Jong is the 27th person charged in a U.S. investigation of bribery at Venezuelan state oil firm PDVSA, the U.S. Justice Department said in a statement.

The Unique U.S. Failure to Control the Virus
The Unique U.S. Failure to Control the Virus
  • World
  • 2020-08-06 19:05:31Z

Nearly every country has struggled to contain the coronavirus and made mistakes along the way.China committed the first major failure, silencing doctors who tried to raise alarms about the virus and allowing it to escape from Wuhan. Much of Europe went next, failing to avoid enormous outbreaks. Today, many countries -- Japan, Canada, France, Australia and more -- are coping with new increases in cases after reopening parts of society.Yet even with all of these problems, one country stands alone as the only affluent nation to have suffered a severe, sustained outbreak for more than four months: the United States.When it comes to the virus, the United States has come to resemble not the...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Latin America