The european union is already preparing import

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The European Union is already preparing import restrictions of its own to shield its producers from a flood of any excess steel that is diverted away from the US market due to the tariffs. The US tariffs affect €6.4 billion ($7.5 billion) worth of EU exports. Popular US products like bourbon, jeans, and peanut butter are likely to be slapped with duties as part of the EU s response. The EU said it would take immediate steps to retaliate, while Mexico vowed to impose duties on everything from US flat steel to cheese. Canada s Government announced it will impose tariffs on as much as $16.6 billion ($12.8 billion) of US steel, aluminium and other products from July 1. The EU further said it would challenge the US decision at the WTO. The EU and Japan issued a joint statement condemning the metals tariffs and saying the possible duties on cars "would cause serious turmoil in the global market and could lead to the demise of the multilateral trading system based on WTO rules." Worries are mounting about the prospect of a trade 44. Jill Petzinger, A Previously Unthinkable US and EU Trade War Has Begun ”, Quartz, May 31, 2018 available at : - war - begins - trump - slaps - steel - and - aluminum - tariffs - on - the - eu - canada - and - mexico/
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US - CHINA Trade War: Analyses of Deeper Nuances and Wider Implications 38 war as the Trump administration also considers tariffs on US auto imports, which could hit top suppliers from Mexico, Canada, Japan and Germany. 45 EU and China China needs the EU because EU is Beijing's biggest trading partner and they trade over $1 billion in goods and services a day. The EU is also the biggest investor in China. At the end of 2015, the value of European investments in China was about $207 billion, compared to about $84 billion from the US at that time. Behind the numbers, a hefty portion of Europe's direct investment comes from factories which manufacture high - end appliances in China that come with a Euro- pean label. The trade and investment relationship between China and the EU is strong enough that China can survive loss of access to the US market if the EU remains open for business. China's Belt and Road Initiative includes ports in European waters and railroads that cut through the EU nations, and while some countries welcome the infrastructure — paid for and built by the Chinese — others fear it would give China broad influence in the more politically unstable Central and Eastern Euro- pean nations. The EU Ambassadors' report says, the Initiative "runs counter to the EU agenda for liberalising trade and pushes the balance of power in favour of subsidised Chinese companies," The only Ambassador who did not sign its con- tents was Máté Pesti of Hungary, a nation which relies heavily on Chinese investment. Hungarian Prime Minister Viktor Orbán said in January, Central Europe has serious handicaps to overcome in terms of infrastructure ... If the European Union cannot provide financial support, we will turn to China. Western European nations are concerned about weaker countries getting close to Beijing.
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