Exactly, perhaps EU jokers don't even know the magnitude of their own problem. The manufacturing value added by Germany (MVA) is $0.5 trillion more than either France or Italy, or even more than France Italy & Spain combined! See how lucrative is their massive luxury car business in real numbers? And how overwhelmingly dependent on China market they are? They wanna play hard ball with China, I can't wait.uh oh, the disease of whiteanglosasonimperialisticitis retardation is showing its symptoms again. I think China should give them an emergency of dosage of no computer chips along with a booster shot of no oil and gas from Russia; that'll fix the symptoms.
don't worry u.s. & e.u. psychological problem will be taken care of.
EU and US look to gang up on China after trade war truce
Brussels holds its nose to strike a ceasefire with Washington that it thinks is illegal.
BY STUART LAU AND DAVID M. HERSZENHORN
October 31, 2021 3:40 pm
ROME — Europe isn't thrilled about the terms of Saturday's trade truce with the U.S. but EU officials finally conceded it was worth accepting Washington's conditions in order to shift focus to the common enemy: China.
The ceasefire is intended to end the bitter trade war that former U.S. President Donald Trump ignited in 2018 by slapping high tariffs on EU steel and aluminum on the grounds that they were a threat to America's national security. While Saturday's deal removes those tariffs, Brussels is still angry that the legal basis for Trump's duties — the supposed European security threat to America — still remains in place and is being used to place limits on EU metal exports.
The clash over metals has been one of the darkest clouds looming over transatlantic relations in recent years and one of the chief reasons to end it was an increasing desire among European and American officials to cooperate on combating what they see as massive overcapacity in Chinese steel mills, fuelled by government largesse.
Saturday's deal will set up a "global arrangement on sustainable steel and aluminium" that includes "like-minded" nations. That's diplomatic code for maneuvering against Beijing's overcapacity. Brussels and Washington also pledged to collaborate on producing steel in a more environmentally friendly way.
U.S. President Joe Biden stressed the steel truce fit with his vision of a global front against Beijing. He styled the deal as part of moves to "prove to the world that democracies — democracies — are taking on hard problems and delivering sound solutions. The EU and U.S. will continue to be the closest of friends and partners.”
“These arrangements will … restrict access to our markets for dirty steel from countries like China and counter countries that dump steel on our markets,” Biden added.
In a similar vein, EU Trade Commissioner Valdis Dombrovskis said the plan was to focus on "how to restrict market access for nonparticipants that do not meet ... the conditions for market orientation, or that do not meet standards for low carbon intensity." Beijing knows full well who he's talking about.
Bitter pill
There's much in the deal, however, that leaves a bitter taste in European mouths.
The EU had originally hoped that Biden would simply unwind the Trump-era tariffs and pull back from Trump's legal basis for action against Europe: Section 232 of the Trade Expansion Act of 1962. Citing Section 232 identifies Europe as a threat to America's national security.
Biden, however, has found himself hamstrung by his own need to keep core steelmaking constituencies on side, and his deal with Europe is not the complete row-back that the Europeans had wanted.
The deal is that — in return for the removal of tariffs — the EU will be able to export an annual quota of 4.4 million tons that are not subject to national security duties. Some 1.1 million tons of this total stems from a clause that will only be valid for the next two years. Exports above the 4.4 million tons will be subject to the existing 25 percent levy from the Trump era.
In practical terms, this is an immediate relief to the European steel industry. In the years before the trade war and the coronavirus pandemic, EU exports generally undershot this level. Data from Eurofer, the European steel lobby, showed that EU exports to the U.S. hit a high of 4.1 million tons in 2014. (Of course, the Europeans will end up paying high tariffs again if EU exports surge past the quota limit in the post-pandemic recovery.)
The European Commission is bitter about having to accept any form of quota, which it regards as illegal because it is still based on the hated Section 232.
"For us this [the deal] does not constitute the end destination," Dombrovskis said on Sunday. "The destination, indeed, should be complete removal of the 232 tariffs," he added.
This view was echoed by the U.S. Chamber of Commerce, which said in a statement that Washington should drop the "unfounded charge that metal imports from the U.K., Japan, Korea, and other close allies represent a threat to our national security."
Lipstick on the pig
At heart, the EU objection is legal as the two sides are at odds over the steel arrangement's compatibility with World Trade Organization rules. The U.S. failed to get the EU to fully withdraw its case against the legality of the tariffs, but Brussels agreed to "suspend" the case. The EU also issued a separate statement to reinforce its point that the U.S. measures are incompatible with global rules.
One EU official noted that a Commission representative had last week described the impending deal to diplomats as a "pig requiring all the lipstick in the world." Another Western diplomat struck a more pragmatic note, though, saying: “It’s a pig but it’s better than a continued distracting fight. On 232, the EU agreed to quotas which they hate but … they negotiated a big quota that also allows for growth."
Looking ahead, however, the two-year period for at least part of the deal adds uncertainty. New negotiations will have to take place close to the next U.S. presidential election, and the European Commission's change of leadership. Both events will take place in 2024.
Barbara Moens contributed reporting.
EU and US look to gang up on China after trade war truce
Brussels holds its nose to strike a ceasefire with Washington that it thinks is illegal.www.politico.eu
It's a blessing! The Euros joined it as cheerleaders, as if these jokers have any real tech so to speak of? Let's talk aviation, their Boeing-wannbe can't even fly without foreign engine tech, and they have the shame to call China COMAC "copy"? They blow ASML out-of-proportion, which in fact was just a nobody assembly plant forcibly erected by the TSMC-Samsung-Intel cartel to fight Canon-Nikon monopoly, even core tech was provided by Dr. Burn-Jeng Lin of TSMC. And don't forget they betrayed China after stealing Chinese money on Galileo, and where are they now when even 3rd phase of Beidou is flying in orbits? They cheerlead for MTCR (Missile Technology Control Regime), ISS (International Space Station) and such, now see what are the results?
www.consultancy.asia
Just some stupid European with zero knowledge write some garbage article
What did people expect of them? I would find it more surprising they never did it before. This is just to show how frail are Transatlantic relationships.EU and US look to gang up on China after trade war truce
Brussels holds its nose to strike a ceasefire with Washington that it thinks is illegal.
BY STUART LAU AND DAVID M. HERSZENHORN
October 31, 2021 3:40 pm
ROME — Europe isn't thrilled about the terms of Saturday's trade truce with the U.S. but EU officials finally conceded it was worth accepting Washington's conditions in order to shift focus to the common enemy: China.
The ceasefire is intended to end the bitter trade war that former U.S. President Donald Trump ignited in 2018 by slapping high tariffs on EU steel and aluminum on the grounds that they were a threat to America's national security. While Saturday's deal removes those tariffs, Brussels is still angry that the legal basis for Trump's duties — the supposed European security threat to America — still remains in place and is being used to place limits on EU metal exports.
The clash over metals has been one of the darkest clouds looming over transatlantic relations in recent years and one of the chief reasons to end it was an increasing desire among European and American officials to cooperate on combating what they see as massive overcapacity in Chinese steel mills, fuelled by government largesse.
Saturday's deal will set up a "global arrangement on sustainable steel and aluminium" that includes "like-minded" nations. That's diplomatic code for maneuvering against Beijing's overcapacity. Brussels and Washington also pledged to collaborate on producing steel in a more environmentally friendly way.
U.S. President Joe Biden stressed the steel truce fit with his vision of a global front against Beijing. He styled the deal as part of moves to "prove to the world that democracies — democracies — are taking on hard problems and delivering sound solutions. The EU and U.S. will continue to be the closest of friends and partners.”
“These arrangements will … restrict access to our markets for dirty steel from countries like China and counter countries that dump steel on our markets,” Biden added.
In a similar vein, EU Trade Commissioner Valdis Dombrovskis said the plan was to focus on "how to restrict market access for nonparticipants that do not meet ... the conditions for market orientation, or that do not meet standards for low carbon intensity." Beijing knows full well who he's talking about.
Bitter pill
There's much in the deal, however, that leaves a bitter taste in European mouths.
The EU had originally hoped that Biden would simply unwind the Trump-era tariffs and pull back from Trump's legal basis for action against Europe: Section 232 of the Trade Expansion Act of 1962. Citing Section 232 identifies Europe as a threat to America's national security.
Biden, however, has found himself hamstrung by his own need to keep core steelmaking constituencies on side, and his deal with Europe is not the complete row-back that the Europeans had wanted.
The deal is that — in return for the removal of tariffs — the EU will be able to export an annual quota of 4.4 million tons that are not subject to national security duties. Some 1.1 million tons of this total stems from a clause that will only be valid for the next two years. Exports above the 4.4 million tons will be subject to the existing 25 percent levy from the Trump era.
In practical terms, this is an immediate relief to the European steel industry. In the years before the trade war and the coronavirus pandemic, EU exports generally undershot this level. Data from Eurofer, the European steel lobby, showed that EU exports to the U.S. hit a high of 4.1 million tons in 2014. (Of course, the Europeans will end up paying high tariffs again if EU exports surge past the quota limit in the post-pandemic recovery.)
The European Commission is bitter about having to accept any form of quota, which it regards as illegal because it is still based on the hated Section 232.
"For us this [the deal] does not constitute the end destination," Dombrovskis said on Sunday. "The destination, indeed, should be complete removal of the 232 tariffs," he added.
This view was echoed by the U.S. Chamber of Commerce, which said in a statement that Washington should drop the "unfounded charge that metal imports from the U.K., Japan, Korea, and other close allies represent a threat to our national security."
Lipstick on the pig
At heart, the EU objection is legal as the two sides are at odds over the steel arrangement's compatibility with World Trade Organization rules. The U.S. failed to get the EU to fully withdraw its case against the legality of the tariffs, but Brussels agreed to "suspend" the case. The EU also issued a separate statement to reinforce its point that the U.S. measures are incompatible with global rules.
One EU official noted that a Commission representative had last week described the impending deal to diplomats as a "pig requiring all the lipstick in the world." Another Western diplomat struck a more pragmatic note, though, saying: “It’s a pig but it’s better than a continued distracting fight. On 232, the EU agreed to quotas which they hate but … they negotiated a big quota that also allows for growth."
Looking ahead, however, the two-year period for at least part of the deal adds uncertainty. New negotiations will have to take place close to the next U.S. presidential election, and the European Commission's change of leadership. Both events will take place in 2024.
Barbara Moens contributed reporting.
EU and US look to gang up on China after trade war truce
Brussels holds its nose to strike a ceasefire with Washington that it thinks is illegal.
Weird logic, who taught that? After US declared trade war on China, China-US surpluses not only didn't drop but widening even more, who is loosing?
edition.cnn.com
www.reuters.com
Where did US pop all these money for stimulus? It borrowed it. From whom? At least 30% from international lenders who buy tbills.Weird logic, who taught that? After US declared trade war on China, China-US surpluses not only didn't drop but widening even more, who is loosing?
China is winning the trade war and its exports have never been higher
China was already outperforming every other major world economy last year as the coronavirus pandemic upended the globe. It looks like the country's relatively sure footing also gave it the edge in its trade war with the United States.
China Sept trade surplus with the United States at $42 billion
China's trade surplus with the United States stood at $42 billion in September, Reuters calculations based on Chinese customs data showed on Wednesday, up from $37.68 billion in August.
China trade surplus with US widens 7.1% to $317 bn in 2020
China's trade surplus with the United States widened last year, underlining the failure of Donald Trump to narrow the gap during his tenure, while demand soared for electronics and medical equipment during the coronavirus pandemic.news.yahoo.com
Those international lenders act like a dam and are helping absorbing the inflation. That is why US government is REALLY REALLY afraid of this dam collapsing. That would be the beginning of hyperinflation, like the one in 1930s in Germany.
Yes, that's why I was saying, the only way US stops its trade balance falling towards negative infinity is to:
Actually the trade deficit helps absorbing the inflation, too. US dollars go out. Products come in. As long as these US dollars don't chase the products within US, US doesn't feel the inflation, until those "damn" foreigners who hold them stop buying US t-bills and start buying US assets/products.
International creditors also have their limits, or own plans (of course they do), so the bulk of debt would be absorbed by the Fed anyway, just look at the Fed's staggering balance sheet and imagine if inflation can't be contained.
