EU Rages At "Unacceptable" US Tariffs, Vows Retaliation "In Coming Hours"

Confirming expectations, Wilbur Ross announced the steel, aluminum tariffs exemptions were lifted on EU, Mexico, and Canada. This prompted angry responses from the head of the EU bloc's executive Jean-Claude Juncker who said that the European Union will impose counter measures immediately.

"This is a bad day for world trade," Juncker said in a speech in Brussels. "So we will immediately introduce a settlement dispute with the WTO and will announce counter balancing measures in the coming hours."

"It is totally unacceptable that a country is imposing unilateral measures when it comes to world trade." 

Juncker also said that he is "concerned by this decision" which he defined as "protectionism, pure and simple." The European head with a penchant for alcohol said that steel overcapacity remains at the heart of the problem, and "the EU is not the source of but on the contrary equally hurt by it", clearly referencing China.

He also said that the EU has consistently indicated openness to discussing ways to improve bilateral trade relations with the US "but have made it clear that the EU will not negotiate under threat" and added that "by targeting those who are not responsible for overcapacities, the U.S. is playing into the hands of those who are responsible for the problem."

"The U.S. now leaves us with no choice but to proceed with a WTO dispute settlement case and with the imposition of additional duties on a number of imports from the US. We will defend the Union’s interests, in full compliance with international trade law."

Needless to say, the export-heavy Germans were furious too:

GERMAN BDA EMPLOYERS' ASSOCIATION SAYS U.S. DECISION ON TARIFFS MARKS A TURNING POINT IN TRANSATLANTIC TRADE, STARTS A DANGEROUS SPIRAL OF PROTECTIONISM: RTRS

In response, some were quick to point out the facts:

US Stocks slumped on the news.

In an amusing twist, Wilbur Ross told CNBC shortly after the tariffs announcement that "we don't know why the stock market is going down." Maybe because more sellers than buyers?

Meanwhile, the opposite took place in Treasuries, where yields are sliding once again:

And the safe-haven dollar is bid:

As Italian bond yields are rising once again...

 

 

Comments

Bank_sters Thu, 05/31/2018 - 10:21 Permalink

The US has been getting fucked.   Juncker can suck a dick- I hate career globalist politicians.  They are sewer rats of the worst kind.

Regardless, the financial collapse is inevitable and it will be one for the ages...

Wild E Coyote Juggernaut x2 Thu, 05/31/2018 - 11:52 Permalink

America is more than ready to provide useful products for the US Dollars. It is the world which is hoarding US Dollars, and refusing to spend. 

Trump is asking China and others to reduce the deficit. As China wants to continue selling worthless toys, they could buy useful cars and Aircrafts from the US.  

The loser till now is US, and it has the right to fight back. 

In reply to by Juggernaut x2

Bulgars JimmyJones Thu, 05/31/2018 - 10:53 Permalink

Seriously, you think that this is going to force domestic production? Who is going to produce it? At what cost? Would you be happy to pay double or triple the price for same garbage? Inflation is going to destroy the whole economy of US in no time. Basically, inflation is going to help debt burden on the expense of the average Joe.. aka Destroy the society!

In reply to by JimmyJones

GreatUncle JimmyJones Thu, 05/31/2018 - 11:28 Permalink

+1 This is about trying to bring manufacturing back to the USA.

To compete in this world you can't have 0 manufacturing and 100% services like the UK because services are built upon some manufacturing base.

If not then the CB has to print the money it loses abroad or do please tell how that money returns.

Oh just realised you drop it in bombs...

In reply to by JimmyJones

pathoftherightous null Thu, 05/31/2018 - 12:28 Permalink

Tell that to Argentina. Don't believe that Econ 101 Keynesian bullshit from the 1970s. If you default you're bankrupt. Let's start with Philip II of Spain in 1577 and end with Greece in 2015. Sovereigns don't have to declare bankruptcy or pay back debt but if you can't pay your bills your frickin' bankrupt.

In reply to by null

zob2020 nuubee Thu, 05/31/2018 - 11:17 Permalink

Eu can be pretty fast considering there is only one person making any decisions.

The eu parliament isnt really a parliament of any kind anyone would recognize as a democratic decision making institution. It may only discuss those matters brought to it by the supreme ruler, has no authority and every person allowed only one speech.. mostly domestic politics... allowed to every member. The rest of the year they must be silent unless a group supreme officer as approved by the fuhrer. Furthermore none of their decisions are actually binding. They may vote.. yes.. but votes matter nothing.
in the end its the self-appointed commission under their self-appointed fuhrer who decides what all that voting and talking REALLY meant and then HE alone will speak eus total will. Noone may claim this is wrong, mistaken or even contrary to what was discussed in the parliament. The fuhrer rules supreme!

In reply to by nuubee

Righttoarmbears zob2020 Thu, 05/31/2018 - 11:37 Permalink

And they wonder why we voted to leave :) :) the UK put forward 72 amendments to the EU for constitutional change, not one got passed, says it all really, and when the Irish MEP was caught leaking details of the TTIP he was threatened with being bared!! probably the biggest dictatorship ever, and this time the Germans have the receipt!!

In reply to by zob2020