Trump rejects Europe’s offer for zero car tariffs; he had personally tabled that idea in July

Jean-Claude Juncker, President of the European Commission (in the middle), accompanied by Cecilia Malmström, Member of the EC in charge of Trade (on the left) visited the White House in Washington D.C., where they participated in meetings with American President Donald Trump. Date: 25/07/201. Location: Washington – White House. © European Union, 2018/Source: EC-Audiovisual Service / Photo: Etienne Ansotte.

The US-Mexico trade agreement, with or without Canada on board, targets Europe aggressively. For one thing, it will make life difficult for the German car companies which produce in Mexican assembly lines and sell in the US. Last Thursday, the European Sting reported the hidden sides of the US-Mexico trade deal in an article entitled, “The US-Mexico trade deal a threat for others, Trump to single out China, Europe”. Only hours later, it became apparent that the Trump administration had designed the favorable trade agreement with their southern neighbor to target Europe. Let’s see why.

The fact that European stocks fell, even in view of the superficially positive news of the new North American trade deal, is an infallible sign of its anti-European content. The pan-European stock index STOXX600 fell more than half a percentage unit. The German stocks index DAX.GDAXI, being directly influenced by the US-Mexico deal, fell by more than a full percentage unit, the largest drop for weeks. Stock index changes aside, there are hard facts which support European Sting’s assertion.

All car tariffs to zero

Also, last Thursday, and less than forty eight hours after the White House announced the deal with Mexico, the European Union Trade Commissioner, Cecilia Malmström, informed a group of European Parliamentarians that Brussels may go as far as to zero the tariffs on imports of American autos. She stated, “the EU is willing to bring down even our car tariffs to zero, all tariffs to zero, if the U.S. does the same”.

This was a major concession from Brussels. Actually, it was a clear European fallback in view of the American demands. It was exactly what the US Ambassador in Berlin had proposed to the CEOs of the German automotive companies early last July. For a moment, the top management of the German automotive companies thought that all their American troubles were over. Facts speak for themselves.

Zero car tariffs? No!

On 12 July, the European Sting reported, “the US Ambassador to Germany Richard Grenell summoned the executives of the major German automotive firms to his office for a secret meeting. What he told them was quite unexpected. Grenell revealed Washington is prepared to propose the abolishment of all tariffs and non-tariff barriers on imports of cars by both sides. According to Handelsblatt Global – a reliable German English language online service – the CEOs of Daimler, Volkswagen and BMW were taken aback, considering this as a dream offer”.

This proposal had greatly annoyed France because her automotive sector is not so competitive as to withstand full tariff ‘disarmament’. Yet, the EU found the courage to put this proposal on the table. France proved she values the unity of the EU more than her own national interest. So, Brussels went ahead to meet the American demands. Alas, the EU discovered it was badly framed.

Trump’s game

Not later than last Thursday afternoon, Trump rushed to categorically reject Malmström’s offer for zero tariffs on car imports. As if this was not enough for the White House to show its negative intentions towards Europe, Trump was reported by ‘Bloomberg’ as saying “Europe’s trade policies are as bad as China”. No doubt then, the US-Mexico deal is a threat to Europe and China and Washington puts them, trade-wise, on an equal footing.

Clearly, during the last few days, Washington’s stance towards Brussels is becoming dangerously aggressive and the “Trump-Juncker trade truce” of 30 July seems to be a dead thing. So, the EU Commission President, Jean-Claude Juncker, couldn’t avoid intervening. Last Friday, 31 August, speaking to the German public television channel, ZDF, he said that if Washington violates the July trade truce and levies the European car imports with extra tariffs, “then we will do the same”. In short, the background of a hot autumn over the Atlantic is set.

Canada like Europe

Returning to North America, Canada finally rejected a more or less forceful adoption of the US-Mexico trade deal as Washington commandingly demanded. Still, Ottawa hasn’t repudiated the standing NAFTA, which hasn’t being invalidated by Washington. After Canada rejected Trump’s ‘imperial’ demands, the ‘America First’ President contemptuously stated ‘there was no need to keep Canada in the North American Free Trade Agreement’.

Undoubtedly, then, the entire staging of the US-Mexico deal was ‘made in America’. The five days strict deadline given to Canada to capitulate and accept a disparaging trade deal was tailored to be rejected. The target is, very probably, to altogether cut Canada out of the US market.

If Washington reserves such an inimical stance for Canada, one can imagine what the American treatment will be for Europe. His rejection of zero car tariffs after Malmström adopted it is a monstrous game. As explained above, he now rejects a proposal which the US ambassador to Berlin made to German car producers, informing them the idea was coming from the White House. No doubt, the White House is complotting against Europe and tries to ridicule her representatives. Surely, the worse is to come. Canada and China will also be targeted.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Marking international day, UN experts call for urgent action to end racial discrimination, in wake of New Zealand anti-Muslim attack

How speaking ‘parentese’ to your child could make them a faster learner

The EU will always have a stable partner in Montenegro, says President Đukanović

Syrian crisis: EU mobilises an overall pledge of €6.9 billion for 2020 and beyond

EU Council approves visa-free travel for Ukraine and cement ties with Kiev

80 adolescents a day will still die of AIDS by 2030, despite slowdown in epidemic

Libya: Security Council demands commitment to ‘a lasting ceasefire’

US now has most coronavirus cases in the world – Today’s coronavirus updates

A digital tax sounds like a great idea. Here’s why it might not be universally popular

‘Never give up’: UN chief urges all who serve, marking UN Day

Human rights breaches in Hong Kong, Russia and at the US-Mexican border

Does the Erasmus program really contribute to the construction of a solid EU identity?

Asymptomatic, pre-symptomatic, symptomatic: what is the difference?

European tourism remains a strong growth factor

This is the human impact of COVID-19 – and how business can help

Why banks escape from competition rules but not pharmaceutical firms

Climate Change and Human Health: Two Faces of The Same Coin

GSMA Mobile World Congress Americas

North Korea missile tests ‘deeply troubling’: senior UN official

How the technology behind deepfakes can benefit all of society

Germany takes cover from Trump in Eurozone and decides to pay for it

Sudzha gas metering station at Russian-Ukrainian border (Copyright: Gazprom, 2015 / Gazprom’s website, Media)

Gazprom starts suspending gas contracts with Ukraine as Brussels fears limited transit to Europe

How much more political is the new EU leadership? Does this include personal bend?

FROM THE FIELD: Faces and Voices of Conflict

A funding gap is hurting developing countries’ efforts to contain COVID-19

The EU launches € 1 billion plan on supercomputers and tries to catch-up with competitors

How AI can ensure your transition to remote work is equitable

Vĕra Jourová, European Commissioner in charge of Justice

The New EU-US “Shield” for data privacy is full of holes

Concern rising over fate of Rohingya refugees sent home by India: UNHCR

Why economic growth depends on closing the interview gap

Next time you fly, could you be boarding a train instead of a plane?

Aid used for trade is helping developing countries diversify

Leaders need hard data to make the hard decisions about sustainability

Countries must make teaching profession more financially and intellectually attractive

The EU seals CETA but plans to re-baptise TTIP after missing the 2016 deadline

Elections in Europe: No risks for the EU, leaders readying to face Trump-Brexit

Tools of asset development: Renewable Energy Projects case

Be a part of the World Forum on Future Trends in Defence and Security

This is what is still holding social entrepreneurs back

‘Endemic’ sexual violence surging in South Sudan: UN human rights office

The EU responds to US challenges by fining Apple with €13 billion

Pharmaceuticals spend millions to push TTIP while consumer groups spend peanuts

Facebook has built an AI-based tool that fixes the social network when it crashes

Dignified and non-discriminatory heath care: does anyone even know what it means?

Draghi tells the EU Parliament his relaxed policies are here to stay

How to have a good Fourth Industrial Revolution

World Summit Awards 2016: Sustainable impact through digital innovation

Idai disaster: Stranded victims still need rescue from heavy rains as UN scales up response

Q and A on the draft digital copyright directive

‘Never give up’: UN chief urges all who serve, marking UN Day

A breath of fresh air: How three disused industrial areas became beautiful parks

Parliament boosts efforts to improve its environmental performance

Sweden’s forests have doubled in size over the last 100 years

World Wildlife Day: UN chief urges ‘more caring’ relationship with nature

The hidden risk of virtual reality – and what to do about it

Press coverage of migration crisis in Europe: a call for collaborative action

Millions of young people need better job skills. Here’s how businesses can help

Yellow vests, rising violence – what’s happening in France?

COVID-19: Budget MEPs call for quick progress on post-2020 contingency plan

Bias in AI is a real problem. Here’s what we should do about it

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s