BRUSSELS – President of the European Commission Jean-Claude Juncker will meet U.S. President Donald Trump in Washington, D.C. on July 25. Juncker is heading to Washington with a hope to decrease tensions in the transatlantic trade relations – the tensions that are bound to have a negative effect on Ukraine too.
The main goal of this visit is to head off Trump’s aggressive trade policy. Back in March, Trump imposed tariffs on the import of European steel and aluminum and has been threatening to add tariffs on European cars.
As a consequence, EU adopted quotas for steel imports in July. Ukrainian steel producers will be among those affected by the quotas.
Before his trip, Juncker spoke with Chancellor of Germany Angela Merkel, President of France Emmanuel Macron, Prime Minister of the Netherlands Mark Rutte and Chancellor of Austria Sebastian Kurz, according to European Commission Deputy Chief Spokesperson Alexander Winterstein. Trump will receive Juncker in the White House.
“Both presidents will have an opportunity to discuss issues of interest for EU and U.S. relations, particularly on trade”, Winterstein said.
European Commissioner for Trade Cecilia Malmström is accompanying Juncker.
After the meeting in the White House, Juncker will deliver a speech “Transatlantic Relations at the Crossroads” at the Center for Strategic and International Studies.
As a reaction to the U.S. trade tariffs, the EU adopted rebalancing measures targeting certain U.S. export products, including whiskey, bourbon, cigars, make-up or skin care powders, clothing, and more – altogether worth 2.8 billion euro.
“We did not want to be in this position,” Malmström said on June 20, after this decision on rebalancing measures was taken. “However, the unilateral and unjustified decision of the U.S. to impose steel and aluminum tariffs on the EU means that we are left with no other choice. The rules of international trade, which we have developed over the years hand-in-hand with our American partners cannot be violated without a reaction from our side. Our response is measured, proportionate and fully in line with the World Trade Organization rules. Needless to say, if the U.S. removes its tariffs, our measures will also be removed.”
As a consequence of the U.S. import tariffs that came in force on March 23, steel suppliers have diverted some of their exports from the U.S. to the EU. In order to avoid a surge of imports and protect domestic steel industry, EU on July 19 introduced provisional safeguard measures in the form of a Tariff Rate Quote for 23 steel product categories. According to the measure, a 25 percent import tariff will apply to steel products when they exceed the average three-year import amount. The quota isn’t calculated separately for each country, and instead works on the “first come, first serves” basis.
Ukraine, as one of the biggest exporters of steel to EU, is bound to be affected by those measures.
