Europe will not find itself in the midst of the trade dispute between the US and China, a senior European official said today, adding that the EU's temporary exemptions from US steel and aluminum tariffs should become permanent.
European Commissioner for Economic and Financial Affairs Pierre Moscovici said that trade was one of the main issues discussed with American officials on the sidelines of the meetings of the International Monetary Fund and the World Bank this week in Washington.
Moscovici told Reuters he had met US Commerce Secretary US Wilbur Ross, Federal Reserve Chairman Jerome Powell, Treasury Secretary Steven Mnuchin and White House economic advisor Larry Kudlow.
"Trade wars are like all wars: they are destructive," he said in an interview. “We have to find a soft attitude in the debate that is underway. This means first of all finding a middle ground between the US and the EU to… move from a temporary to a permanent exemption. We are actively discussing in a fairly constructive spirit with our American friends and I hope we will have this decision by 1 May, ”he said, referring to the date on which the temporary exemption for the EU expires.
The resentment of the EU stemmed from President Donald Trump's announcement last month of a 25% tariff on steel imports and a 10% tariff on aluminum imports to counter what he called unfair international competition. However, temporary exemptions have been granted to a number of countries, including those of the EU.
Trump also announced tariffs for Chinese products, provoking retaliation from Beijing and fueling the fears of a global trade war.
Moscovici said China needs to implement reforms and show openness in trade and resolve the issue of overcapacity in steel production, but added that it should be done through the World Trade Organization rather than a trade war.
Europe would not side with either the United States or China, he said. "This is not the way things are to be approached."
“Choosing a side would mean entering the climate of confrontation and this is not the way things are to be handled. Certainly there are imbalances and they must be addressed, there are problems and they must be solved, but not through confrontation “.