ZCZC
BCN-16
US-EU-DISPUTE-TRADE-STEEL-GERMANY
‘Illegal’ US tariffs risk ‘escalation spiral’ in global trade: Merkel
BERLIN, June 1, 2018 (BSS/AFP) – German Chancellor Angela Merkel blasted
US import duties on steel and aluminium imports Thursday as “illegal” and
said they risked sparking a disastrous “spiral” of retaliatory measures.
“The German government rejects the tariffs imposed by the US on steel and
aluminium. We consider this unilateral measure to be illegal; the cited
grounds of national security do not stand up,” Merkel’s spokesman Steffen
Seibert said in a statement.
“The measure risks touching off spirals of escalation that in the end hurt
everyone.”
Merkel said the European Union had made the “necessary preparations for
appropriate countermeasures” to the tariffs, after EU chief Jean-Claude
Juncker announced steps to hit back “within hours”.
But Seibert stressed Berlin remained ready to talk to head off a trade
war.
“The situation remains: the German government will continue to fight for
free trade and open markets,” he said.
“We will continue to take a multilateral approach.”
German Foreign Minister Heiko Maas pledged a united European front against
protectionist measures.
“Our answer to ‘America First’ can only be ‘Europe united’,” he said in a
statement.
“Trade wars don’t have any winners.”
Maas said Berlin “cannot understand and rejects” the US decision announced
by Commerce Secretary Wilbur Ross to target the EU as well as Canada and
Mexico from midnight.
“We have repeatedly made clear to the Americans that we have no interest
in an escalation in trade relations between the EU and the US,” he said,
expressing regret that feverish talks in recent weeks had proved fruitless.
Germany, the EU’s top economy, is particularly vulnerable to the tariffs
due to its heavy reliance on the auto industry.
The German Chambers of Commerce and Industry (DIHK), which has calculated
that autos and car parts accounted for over a quarter of Germany’s 111.5
billion euros ($130.3 billion) in exports to the United States last year,
said the US move “should almost be seen as a provocation”.
German carmakers exported nearly half a million vehicles to the US in
2017, but they also built over 800,000 cars at American factories where they
employ some 36,500 people — and car parts producers around 80,000 more.
In the first statement from the German industry, luxury automaker BMW
warned of a destructive impact from the tariffs.
“Barrier-free access to markets is therefore a key factor not only for our
business model, but also for growth, welfare and employment throughout the
global economy,” it said.
BSS/AFP/HR/0955