Trade war averted for now between U.S., Europe

BERLIN -- The U.S. government said Thursday that the European Union will be among the trading partners that will be spared from an immediate decision to impose tariffs on steel and aluminum imports into the U.S.

The move averts the imminent risk of a trade war with the EU, which had threatened to strike back with tariffs on a range of U.S. goods.

U.S. Trade Representative Robert Lighthizer said in Washington that President Donald Trump has decided to "pause" the tariffs for countries that are engaged in trade negotiations with the United States. He said the 28-country EU would be exempt, along with Canada, Mexico, Australia, Argentina and Brazil.

Trump had planned to impose tariffs of 25 per cent on imported steel and 10 per cent on aluminum. The sanctions are meant to hit China for flooding the world with cheap steel and aluminum but in practice would have hurt many allies, such as the EU.

Earlier, Germany's economy minister said he had found officials in Washington "open to our arguments" when he visited to try and avert the tariffs.

Germany's Peter Altmaier and EU trade commissioner Cecilia Malmstrom both visited Washington this week to seek the exemption.

Altmaier told Germany's parliament Thursday "it is a question of fundamental significance: whether we all stand for open and fair world markets in the future."

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