During the past couple of decades china has built a

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During the past couple of decades, China has built a huge steel industry that now produces more than ten times as much output as the US steel industry does. China produces half of all the steel in the world. Rather than focussing on Chinese producers alone, the White House on March 1 announced that the new import lev- ies—twenty - five percent on steel and ten percent on aluminium—would apply to all of America s trading partners, including close allies such as Canada and the EU. 42 (Source: US Commerce Department) 42. Rachel Tang, China s Steel Industry and Its Impact on the US: Issues for Congress ”, Congressional Research Service, September 21, 2010 available at: row/R41421.pdf
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US - CHINA Trade War: Analyses of Deeper Nuances and Wider Implications 36 The EU has taken note of the temporary exemptions that the US has granted and would like them to be permanent. The EU has been treated differently from China at its own request. South Korea has also received exemptions, and Japan is considering how far it can go in resisting Trump. 43 Political pressure on the EU is likely to increase as China and others affected by the US tariffs would try to redirect their supplies to the EU, increasing competitive pressures on the Eu- ropean firms. Will the EU be able to keep its borders open, or will lobby pressures become so great that the EU will also feel compelled to raise tariffs? After meeting Angela Merkel, the German Chancellor, at the White House, Trump brought up the US steel industry, saying its success was vital to national security. But, he also discussed the US trade deficit in goods with the EU, which was $151.4 billion last year, saying he was committed to remedy these trade balances. Trump singled out the auto industry, seemingly oblivious to the fact that General Motors and Ford have for many decades maintained extensive manufacturing operations in Europe. Since the nineteen - nineties, BMW and Mercedes - Benz have had plants in the US. Later, Merkel, the French President Emmanuel Macron, and British Prime Minister Theresa May spoke over the telephone, and Merkel issued a statement that Europe was resolved to defend its interests. The European Commission issued a statement, As a longstanding partner and friend of the US, we will not negotiate under threat. Any future transatlantic work program has to be balanced and mutually beneficial. The EU has already drawn up a list of more than $3 billion worth of US products — such as bourbon, tobacco, and Harley - Davidson motorcycles — that will be subject to retaliatory tariffs. Canada, too, announced its targets for retalia- tory tariffs on everything from toilet paper to ballpoint pens. Reprisals from Cana- da and Mexico would hit the US economy even harder than the EU measures, as Mexico buys almost as many US goods as all of Europe. Enough progress was not achieved in discussions with the EU over trade concessions and Canada and Mexico on rewriting the North American Free Trade Agreement to give them permanent exemptions from the metals tariffs. The EU, Canada and Mexico
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