EU says U.S. tariffs are not the way to do business

The EU says it has no choice but to defend itself after U.S. President Donald Trump said he will impose tariffs on EU steel and aluminium. Brussels has described the move as "protectionism, pure and simple." saying it "is not the way we do business." In a tweet, EU parliament group leader Manfred Weber said: "We will not accept this highly regrettable decision without reacting." And so the battle lines are drawn up; uncertainty for businesses on both sides of the Atlantic - especially for Europe's steel and aluminium sector. "We need to take safeguard measures for the EU," said Axel Eggert, Director-General, European Steel Association. "We're at the front door of a trade war. Therefore we have to continue discussions, negotiations with the US. That has to be done on a political level because the European Commission is also planning other rebalancing measures, it's not only about safeguards." The steel industry is big business in the EU. It directly employs around 320,000 people, producing 170 million tonnes of steel every year, at more than 500 production sites. The U.S. is the second biggest export destination after Turkey - 4.9 million tonnes of steel went there last year. U.S. imports like jeans and Harley Davidsons have already been earmarked for EU retaliation. Brussels will also now trigger a dispute settlement case at the World Trade Organisation, saying America's going against agreed international rules. There is a worldwide glut of steel and aluminium largely blamed on excess production in China. "There is a much broader issue, a much bigger issue that the administration in Washington is aware and that's the distortions in the Chinese economy that need to be addressed," said Peter Chase, the German Marshall of the United States. "If those issues are going to be addressed, the US will need to have the EU as an ally. And to be getting into a quarrel with the EU at the same time that we have a much bigger issue is tactically wrong - and strategically wrong." The EU says it doesn't want a trade war, but it's difficult to see how that can be avoided.

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