EU Ready To Sue UK If Trump 'Exempts British Steel Industry' from Tariffs
The European Commission has reacted furiously to the British trade secretary
The European Commission has declared it will sue the UK if President Donald Trump exempts Britain from U.S. tariffs on steel and aluminum, according to reports.
The U.S. President has hinted that the tariffs, which are primarily positioned to protect American aluminum and steelworkers from foreign dumping, will not be applied to all of America's allies, which could include the UK.
The European Commission has reacted furiously to the British trade secretary Liam Fox, suggesting that United Kingdom will try to “maximize the UK’s case” for a similar exemption according to the Telegraph.
Breitbart reports: Jyrki Katainen, one of the European Commission’s vice-presidents, added: “We expect the whole EU to be treated as a trading bloc … We cannot accept that the EU is divided into different categories. All our member-states are bound to the same set of rules when it comes to trade.”
While it is true that EU member-states are not allowed to strike their own trade deals (one of the key arguments for leaving the bloc, according to Brexit campaigners) it is not clear that there were any rules requiring Britain to subject itself to the same third-country tariffs as other EU members, even if those third countries did not insist on applying them to Britain — until now.
Donald Trump is getting tough on the EU, after the bloc's unelected leaders threatened to levy punitive tariffs on iconic American brands in response to his attempts to protect American steelworkers.
The United States is an important export market for Britain’s small steel industry, accounting for over 15 per cent of exports — although it is not any real threat to American workers, making up only a very small percentage of total imports.
For Germany, the EU’s dominant member-state and number eight in America’s top ten sources of steel imports, it is a different story — which might explain the EU’s hostile line.