print-icon

Biden And EU Leaders To Unravel Trump's $18 Billion 'America First' Tariff Fight

Tyler Durden's Photo
by Tyler Durden
Wednesday, Jun 09, 2021 - 08:10 AM

President Joe Biden and his European Union counterparts will commit to ending outstanding trade battles next week at an EU-US summit in Brussels on June 15, as globalists eager to get back to 'business as usual' seek to unravel tariffs related to a steel and aluminum conflict which came to a head under the Trump administration - contributing to over $18 billion in US and EU exports subject to steep levies.

According to Bloomberg, which has seen a draft of the conclusions, the allies will agree to resolve disagreements - including a nearly two-decade old aircraft dispute which involves illegal government aid provided to Airbus and Boeing - before July 11. In advance of the agreement, US and EU leaders have agreed to suspend aircraft tariffs until July ahead of the pending settlement.

In 2019, the World Trade Organization authorized the U.S. to level tariffs against $7.5 billion of EU exports annually over state support for Airbus, while the EU won permission to hit back with levies on $4 billion of U.S. goods.

The two sides will also work toward rolling off tariffs in the steel and aluminum dispute before Dec. 1, according to the draft. In 2018, the U.S. imposed levies on metals exports from Europe on national-security grounds. The EU retaliated by targeting 2.8 billion euros ($3.4 billion) of American imports with tariffs on a range of big-brand products, including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and bourbon whiskey. -Bloomberg

"We should finally put ongoing disputes, of which unfortunately there are some, behind us," said German Foreign Minister Heiko Maas - who must be giddy as a schoolgirl after President Biden handed both Germany a massive gift by laying off sanctions over the Nord Stream 2 pipeline through which Russia will natural gas to Europe. "We are now making progress in some areas: the moratorium on punitive tariffs from the Airbus-Boeing dispute and the EU decision against responding in kind to the measures in the dispute over steel and aluminum tariffs."

Meanwhile, the US and EU will announce a partnership to bolster the semiconductor industry in both regions as part of a broader platform to collaborate on digital issues through a 'Trade and Technology Council,' which will be formally agreed upon during the summit.

"We commit to building an EU-U.S. partnership on the rebalancing of global supply chains in semiconductors with a view to enhancing EU and U.S. respective security of supply," reads the draft, which notes that they will look to support the design and production of the most powerful and resource efficient semiconductors.

According to the Trade and Technology Council, which aims to "avoid new barriers to trade," they will establish working groups on artificial intelligence, export controls and investment screening.

0