The US Trade War 2.0. New facts. Anton Hanzenko

After the trade confrontation between the US and China, new US trade duties on steel and aluminum reached the euro zone and Canada. So, on April 28, US authorities put an ultimatum to Canada and the eurozone, if they refuse to accept quotas, they will be taxed against imports of steel and aluminum. This decision must be made before May 1.

EU action

At the time of this writing (May 3, 2018) there has been no significant progress on this issue. But it is worth noting that the EU on April 17 sent a complaint to the WTO for state duties. Also, the European Union, before May 1, announced its readiness to retaliate against the duty states, namely, to apply duties on goods from the United States of America, such as:

• cigarettes,
• jeans,
• t-shirts,
• motorcycles
• and orange juice.

Thus, playing on the lead and limiting the US government in manipulation, as it was with China.

It is also worth noting that the EU officially expressed its readiness to sit down at the negotiating table and make even concessions, outstripping the American politicians and reducing the likelihood of trading “swings” that were traced with China.

At the same time, the relations between the euro area and the United States do not go into any comparison with China, let alone with Canada. Therefore, the US-China trade confrontation market in the coming days probably will not see.

The US attitude to the EU and China

Continuing to draw parallels between the trade confrontation of the US with the EU and China, one can not mention the importance of these partners for the States. Eurozone for America has always been the main partner and the growth of investment between countries has always been welcomed on both sides. What can not be said about China and the United States. So, one of the last moratoriums of the White House was a ban on the purchase of American companies or absorption by Chinese companies. And earlier, the States expressed concerns about Chinese investments in their economies.

As a result, the trade confrontation between the US and China lost its keenness after both countries sat down at the negotiating table. The Union immediately invited the States to move to the second phase, having passed the period of active confrontation with the use of countermeasures. Therefore, at the moment, the trade confrontation between the US and the EU regarding steel and aluminum can be considered as yet exhausted. At least until there is a new incentive, to some kind of confrontation.

Anton Hanzenko

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