President Dalia Grybauskaitė

U.S.-EU trade war is only temporarily postponed

2018-03-23

Friday, 23 March, Brussels President Dalia Grybauskaitė is attending the European Council where the EU-U.S. trade relations following the U.S. President’s decision to grant temporary tariff exemptions on steel and aluminum imported from the EU are on the agenda.

According to the President, the tariffs have been suspended only temporarily. The possibility of a trade war has been also put off but not eliminated. This necessitates both parties to find a common long-term solution at the negotiating table.

Following Washington’s decision to exempt the EU from metal tariffs until May 1, discussions with the United States on trade issues will continue. EU leaders stress that the EU and the U.S. will resolve the problem of surplus steel and aluminum on the global market only by acting together.

U.S. tariffs on steel and aluminum will not have a direct negative impact on Lithuania. However, trade limitations would hurt European steel and aluminum producers, heavily affecting the United States itself. In 2002, the U.S. imposed tariffs on imported steel and waived them 18 months later. U.S. data indicated that the limitations had resulted in a 30 billion dollar loss for the U.S. economy while each job preserved in steel industry cost 13 jobs in other sectors. U.S. tariffs on steel and aluminum could mean a loss of around 2.7 billion dollars for the EU economy.

Press Service of the President

Last updated 2018.03.23 12:49

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