{"id":131937,"date":"2019-09-18T07:30:28","date_gmt":"2019-09-18T07:30:28","guid":{"rendered":"https:\/\/www.bnreport.com\/winter-is-coming-trump-tariff-clash-looms-for-von-der-leyen\/"},"modified":"2019-09-18T07:30:28","modified_gmt":"2019-09-18T07:30:28","slug":"winter-is-coming-trump-tariff-clash-looms-for-von-der-leyen","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/winter-is-coming-trump-tariff-clash-looms-for-von-der-leyen\/","title":{"rendered":"Winter is coming: Trump tariff clash looms for von der Leyen"},"content":{"rendered":"<p>The first big battle for Ursula von der Leyens new European Commission is already clear: its a trade clash with U.S. President Donald Trump.<\/p>\n<p>The incoming EU leader is adamant that she wants to create a \u201cgeopolitical\u201d Commission that responds to threats from China and the U.S., and shes probably going to have to prove her mettle as a global gunslinger within weeks.<\/p>\n<p>A confidential World Trade Organization (WTO) ruling, issued Friday, allows Trump to trigger a full-blown trade war by imposing tariffs on billions of euros of European exports, from as soon as September 30.<\/p>\n<p>This puts von der Leyen in a political bind. As the American tariffs come in response to European subsidies to the aircraft maker Airbus, Brussels doesnt have immediate grounds to hit back.<\/p>\n<p>To make matters worse, the self-styled \u201cTariff Man\u201d is threatening a killer one-two punch against Brussels. In addition to Airbus tariffs, probably on up to \u20ac8 billion of goods, Trump is also looking to impose hefty duties on European auto exports that could come as early as mid-November.<\/p>\n<blockquote><p>\n\u201cThe global trade climate is not good. We have no more natural allies\u201d <em>\u2014 Bernd Lange, Parliament trade committee chairman<\/em>\n<\/p><\/blockquote>\n<p>Officials in Brussels have been watching with horror how Trump <a href=\"https:\/\/www.politico.eu\/article\/japan-donald-trump-uneasy-alliance\/\" rel=\"noreferrer noopener\" target=\"_blank\">used the threat of those same auto tariffs to strong-arm Japan<\/a> into making concessions on agriculture. The EU fears that a U.S.-Japan trade deal, which is supposed to be signed at next weeks U.N. General Assembly in New York, will reinforce the presidents belief that he can proceed with his gun-to-the-head tactics to extract similar concessions from the Europeans.<\/p>\n<p>On top of these concerns, <a href=\"https:\/\/www.politico.eu\/pro\/snubbed-eu-says-china-trade-meeting-is-likely-to-be-canceled\/\" rel=\"noreferrer noopener\" target=\"_blank\">China has snubbed the EU<\/a> by not sending a top official to a trade meeting scheduled for next week as Beijing appears to prioritize reaching an \u201cinterim trade deal\u201d with the U.S. instead of making concessions on long-standing EU demands for market openings.<\/p>\n<p>\u201cThe global trade climate is not good. We have no more natural allies,\u201d said Bernd Lange, chair of the European Parliaments trade committee.<\/p>\n<p>The looming trade escalation also sets the stage for von der Leyens pick as trade chief, Phil Hogan, who has a reputation as more of a brawler than his predecessor Cecilia Malmstr\u00f6m. The 1.95-meter tall Irishman <a href=\"https:\/\/www.rte.ie\/radio\/radioplayer\/html5\/#\/radio1\/21617172\" rel=\"noreferrer noopener\" target=\"_blank\">told RTE radio<\/a> last week he would do everything he could \u201cto get Mr. Trump to see the error of his ways\u201d on trade.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2019\/09\/GettyImages-1135749365-1-714x499.jpg\" \/><\/p>\n<p>Phil Hogans tenure as trade commissioner promises to be bruising | Emmanuel Dunand\/AFP via Getty Images<\/p>\n<h3>From whiskey to wings<\/h3>\n<p>The WTO ruling on Airbus represents the most urgent challenge.<\/p>\n<p>Americas tariff hit list <a href=\"https:\/\/ustr.gov\/sites\/default\/files\/enforcement\/301Investigations\/Preliminary_Product_List.pdf\" rel=\"noreferrer noopener\" target=\"_blank\">published<\/a> in April and <a href=\"https:\/\/ustr.gov\/about-us\/policy-offices\/press-office\/press-releases\/2019\/july\/ustr-proposes-additional-products\" rel=\"noreferrer noopener\" target=\"_blank\">extended<\/a> in July covers about $22.7 billion worth of iconic European products \u2014 from whiskeys and Dutch Gouda cheese to luxury goods such as handbags \u2014 that the U.S. can tax at different rates to claw back damages of probably up to \u20ac8 billion. Washington can impose the tariffs as soon as the ruling has been made public, which is expected to happen in two weeks.<\/p>\n<p>Malmstr\u00f6m told reporters on Monday that Brussels had pulled out all the stops to avoid a tariff escalation from happening, but said that the Americans \u201chave not engaged\u201d in offers to reach a negotiated settlement.<\/p>\n<p>\u201cWe have made concrete proposals but received no reaction. Zero,\u201d said trade committee chair Lange.<\/p>\n<p>Gordon Sondland, the U.S. ambassador to the EU, said that Washington is seeking \u201can end to subsidies for Airbus and the recovery of damages. However, if negotiations between the U.S. and EU dont elicit a change in this behavior and a recovery of those damages, then the United States will suspend concessions and resort to tariffs.\u201d<\/p>\n<p>Tiziana Beghin, a member of the European Parliament from the Italian 5Star Movement, said the threatened tariffs are a wakeup call for the incoming Commission to develop more robust defense mechanisms in the trade sector.<\/p>\n<p>\u201cThe policy of muscle and retaliation is damaging to everyone and does not suit anyone,\u201d she said. \u201cThe European Union needs more effective trade defense instruments as soon as possible to enable it to impose sanctions on third countries if unjustified tariffs are applied to European products.\u201d<\/p>\n<blockquote><p>\nBesides that self-inflicted wound, the EU expects to have a chance to impose counter-duties against the U.S. in about half a year.\n<\/p><\/blockquote>\n<p>Referring to the various Italian products that are targeted by the U.S. \u2014 such as pasta, Parmesan cheese, roasted coffee and olives \u2014 Beghin said that the WTO ruling is \u201cworrying and clearly damages Made in Italy.&#039;\u201d<\/p>\n<p>Other targeted food producers have also expressed concern. \u201cEvery barrier that a country introduces is of course troublesome. We are in favor of free trade,\u201d said Ren\u00e9 van Buitenen, spokesperson for the Dutch Dairy Association (NZO). He added that about 2 percent of all Dutch cheese and other dairy products go to the U.S. \u201cIf these tariffs were to be introduced, we would need to see whether American producers are willing to pay more or where we can find alternative export markets.\u201d<\/p>\n<p>French wine exporters, who have already been threatened with U.S. tariffs in a parallel trade dispute over Frances digital services tax, called for a negotiated outcome as nearly 20 percent of their global sales \u2014 worth over \u20ac1.6 billion last year \u2014 go to the United States and risk being affected by the duties, according to the Federation of French Wine and Spirits Exporters.<\/p>\n<h3>Tit for tat<\/h3>\n<p>Besides the long list of prominent European food products in Trumps sights, the U.S. tariff list also covers airplane parts. This has sparked a war<a href=\"https:\/\/www.politico.eu\/article\/winter-is-coming-donald-trump-tariff-clash-looms-for-european-commission-president-ursula-von-der-leyen\/?utm_source=RSS_Feed&amp;utm_medium=RSS&amp;utm_campaign=RSS_Syndication\" rel=\"noreferrer noopener\" target=\"_blank\">Read More \u2013 Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The first big battle for Ursula von der Leyens new European Commission is already clear: its a trade..<\/p>\n","protected":false},"author":1,"featured_media":131938,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-131937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Winter is coming: Trump tariff clash looms for von der Leyen - 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