{"id":68034,"date":"2018-03-12T09:40:25","date_gmt":"2018-03-12T09:40:25","guid":{"rendered":"http:\/\/www.bnreport.com\/france-tells-trump-a-trade-war-wont-go-his-way-3\/"},"modified":"2018-03-12T09:40:25","modified_gmt":"2018-03-12T09:40:25","slug":"france-tells-trump-a-trade-war-wont-go-his-way-3","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/france-tells-trump-a-trade-war-wont-go-his-way-3\/","title":{"rendered":"France tells Trump a trade war won\u2019t go his way"},"content":{"rendered":"<p>France has a message for Donald Trump: America\u2019s aggressive, go-it-alone tariff tactics are doomed.<\/p>\n<p>Speaking to POLITICO, French Trade Secretary Jean-Baptiste Lemoyne warned that the U.S. president risks <a href=\"https:\/\/www.politico.eu\/pro\/trade-donald-trump-united-states-europe-digs-in-to-fight-global-trade-war-against-trump\/\" rel=\"noreferrer\" target=\"_blank\">igniting a trade war<\/a> by imposing tariffs on steel and aluminum, but insisted that his strategy would backfire.<\/p>\n<p>\u201cWe are entering an era where trade war is starting to show its teeth. And we think that\u2019s not good news,\u201d Lemoyne said in an interview in a Brussels hotel. \u201cAmerican politics today \u2014 unilaterally putting in place a regime of additional tariffs on steel and aluminum \u2014 comes on the heels of a policy which aims to gut the dispute settlement system of the World Trade Organization.\u201d<\/p>\n<p>The U.S. president is using the threat of tariffs to pressure trading partners into new trade arrangements with Washington that he hopes will help slash America\u2019s yawning deficit. Mexico and Canada, for example, have only escaped duties on the condition that they strike a new version of the North American Free Trade Agreement that will tilt the balance of trade more in America\u2019s favor.<\/p>\n<p>Lemoyne retorted, however, that there <a href=\"https:\/\/www.politico.eu\/article\/eus-anti-trump-hit-list-everything-including-the-kitchen-sink\/\" rel=\"noreferrer\" target=\"_blank\">was no way that the EU<\/a>, the world\u2019s largest trade group, would be strong-armed into any sort of new transatlantic trade deal along those lines.<\/p>\n<blockquote>\n<p>\u201cThis escalation in taxes and tariffs isn\u2019t good for the American consumer\u201d \u2014 <em>French Trade Secretary Jean-Baptiste Lemoyne<\/em><\/p>\n<\/blockquote>\n<p>In part, he explained, it was impossible to resurrect the idea of a transatlantic trade deal because Trump had quit the Paris agreement on climate change. That has become a red line for new EU trade deals, at France\u2019s insistence.<\/p>\n<p>\u201cWe have said that to strike trade agreements, this must be done with countries whose governments are party to the Paris agreement,\u201d he said. \u201cPotentially blocking us on steel and aluminum to force a free trade deal is not the right way.\u201d<\/p>\n<h3>Trouble on the home front<\/h3>\n<p>Lemoyne also stressed that Trump\u2019s tariffs would <a href=\"https:\/\/www.politico.eu\/article\/donald-trump-threatens-to-blow-up-global-trading-order-with-tariffs-aluminum-steel-china\/\" rel=\"noreferrer\" target=\"_blank\">come back to bite the American<\/a> economy. Beyond tariffs of 25 percent on steel and 10 percent on aluminum, the president is proposing a broader policy of reciprocity. That would mean lifting tariffs on, say, European cars because the EU imposes higher duties on motor vehicles than the U.S. does.<\/p>\n<p>While Lemoyne said Europe stood ready to retaliate directly against targeted U.S. products, he argued that Trump would be deterred from a broader trade war when an arms\u2019 race over tariffs ramped up prices for American consumers.<!--more--><\/p>\n<p> <img decoding=\"async\" src=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2018\/03\/GettyImages-914547862-714x476.jpg\"\/><\/p>\n<p>Jean-Baptiste Lemoyne | Stephane de Sakutin\/AFP via Getty Images<\/p>\n<p>\u201cThis escalation in taxes and tariffs isn\u2019t good for the American consumer,\u201d said Lemoyne.<\/p>\n<p>He added that recent U.S. tariffs on Canadian soft-wood lumber exports meant that American importers continued to import the Canadian wood but passed on the higher price to consumers. \u201cIn reality this type of measure can turn against the Americans themselves,\u201d he said.<\/p>\n<p>Lemoyne also insisted that Trump would fail in his attempt to disable the World Trade Organization as the global forum to resolve trade disputes. The U.S. is vetoing the appointment of new judges in the WTO\u2019s appellate court, in what the French minister and the European Commission say is an attempt to undermine the institution.<\/p>\n<p>Lemoyne warned that France would push for the appellate court to continue its work despite Trump\u2019s opposition.<\/p>\n<p>\u201cIt is necessary to think about all the forms of Plan B, which make it possible to maintain \u2026 a mechanism for those states that are in favor of having it. Because there is still a very strong majority of WTO countries that wish to continue to have this type of dispute settlement.<\/p>\n<p>\u201cSo I think that now we must actually start to be creative and therefore France will also \u2026 put proposals on the table to restore efficiency to the WTO both in its function as a developer of standards and in its function as a judge.\u201d<\/p>\n<p>French President Emmanuel Macron will discuss the trade tensions with Trump on his state visit to Washington next month, Lemoyne said.<\/p>\n<p>In another sign that Europe is unwilling to roll over in the face of Trump\u2019s threats, Lemoyne said that Paris would use the EU leaders\u2019 summit on March 22-23 \u201cto establish what we call a European chief enforcer, who would be charged with the power to activate all sorts of control mechanisms and retaliation measures.\u201d<\/p>\n<p>Such an enforcer, who would work in the European Commission\u2019s trade department, \u201ccould also be a deterrent vis-\u00e0-vis certain partners who sometimes test the limits.\u201d<\/p>\n<p><a href=\"https:\/\/www.politico.eu\/article\/france-tells-trump-a-trade-war-wont-go-his-way-tariffs-jean-baptiste-lemoyne\/?utm_source=RSS_Feed&amp;utm_medium=RSS&amp;utm_campaign=RSS_Syndication\" rel=\"noreferrer\" target=\"_blank\">Original Article<\/a><\/p>\n<p> [contf] [contfnew]         <img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcRMd3Tz2gX9xSa6CJyaOj2dokBVcrdaT4yY3R3RI7YmL18vCLZZ\"\/> <\/p>\n<h5><a href=\"http:\/\/www.politico.com\/&gt;Politico&lt;\/a&gt;&lt;\/h5&gt;_&lt;\/p&gt;[contfnewc]_[contfnewc]_&lt;\/body&gt;&lt;\/html&gt;\" rel=\"noreferrer\" target=\"_blank\"><\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"<p>France has a message for Donald Trump: America\u2019s aggressive, go-it-alone tariff tactics are doomed.<br \/>\n..<\/p>\n","protected":false},"author":1,"featured_media":68035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-68034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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