In international trade disputes, the warnings of escalation is growing in the run-up to the visit of Jean-Claude Juncker in Washington. Not only the heads of the IMF and the US Central Bank, the Fed, Worried.
The international trade dispute keeps the world in breath and dominated in the run-up to the Finance Ministers meeting of the G20 at the weekend in Argentina, the Happen. And more and more prominent decision-makers Express their fears of a further escalation of the dispute.
IMF Chief Christine Lagarde wrote on Wednesday in a Blog, the negative effects would hit the US hardest. US Central Bank chief Jerome Powell spoke about an Escalation of the trade dispute with new duties concerned. “If this leads to a protectionist scissors world, that would be bad for our economy,” said Powell.
To optimism of Donald trump’s economic policy Advisor Larry Kudlow tried. He expected that EU Commission chief Jean-Claude Juncker during his visit to Washington on 25. July will make a “very important free trade offer”. In the EU, the expectations of Juncker’s Meetings with US President Donald Trump, by contrast, subdued.
“The tensions in the trade policy have already left their mark,” wrote IMF Head Christine Lagarde ahead of the G20 Finance Ministers meeting in Buenos Aires. “The extent of the damage but it depends on what the policy does next.” The International monetary Fund, according to the economic performance would be under the assumption that the announced tariffs to be implemented, in 2020, globally by 0.1 percent compared to the previous expectations curbed. The consequences would meet with Lagarde that while all the countries. The US economy was particularly vulnerable.
Donald Trump, a US-based Bank’s chief Jerome Powell, nominated:
Fed chief Powell warns of growing protectionism
Fed chief Powell said in front of the house of representatives: “The evidence is clear that countries that trade have higher productivity and higher income.” A protectionist economy, don’t be so competitive and productive. In the US economy, the Worry to be on the increase. A risk is that firms move investment. Powell, who was appointed by Trump avoided, however, open criticism of the U.S. government.
Their goal is, according to his assessment, to reduce the customs duties in the world. If there were then disturbances, “then it is maybe worth to pay a short-term price to get into a better Position”.
In the U.S.-sparked trade dispute with China, U.S. economic adviser Kudlow accused the President of the people’s Republic, Xi Jinping, to delay the negotiations. He does not assume that Xi, with the economy make reforms very seriously. China could prevent the imposition of additional tariffs by changing its trade policy.
The United States imposed because of alleged unfair trade practices of the people’s Republic of additional duties on Goods to a value of 34 billion dollars in the year. Trump additional duties on imports from China threatens. With Mexico, he wants to close instead of the free trade agreement, Nafta, has also signed Canada under a separate contract. Canada could follow later.
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WTO: In the cul-de-SAC
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WTO: In the cul-de-SAC
Juncker and Malmström to give unimpressed
Also with the EU Trump has sparked a trade conflict. So the United States is demanding since the beginning of June additional tariffs on steel and aluminum. The EU responded with retaliatory tariffs on US Goods such as peanut butter and motor bikes. In addition, the EU is trying, with protective tariffs against a feared “steel glut” in countries such as China, the domestic economy from the indirect consequences of the U.S. to protect trade policy.
According to Kudlows EU wide Commission chief Juncker during his visit to Washington an offer in trade policy. He himself could not confirm this, but have experienced it only from ambassadors and other people.
Juncker said that he looks “confident and relaxed” on his trip to the USA. The EU will not allow itself to be intimidated. You will continue to respond in equal measure to provocation. With views of the U.S. goal of an individual trade agreements with the EU States, Juncker said: “All Attempts to split the European Union, are in vain.” Juncker wants to speak at next Wednesday’s meeting with Trump, to duties on cars from the EU threatened to prevent. They would meet, especially German manufacturers.
Cecilia Malmström has made the US “partners” that the EU will strike back
The European Union confirmed that they are working on new retaliatory steps, should US President Donald Trump, impose higher customs duties on EU cars. For this case, you prepare a list of compensatory measures, said EU trade Commissioner Cecilia Malmström in Brussels on Thursday. “And we have made to our American partners.” The objective of the trip of the President of the EU Commission Jean-Claude Juncker next week to Washington for a de-escalation of tensions. In addition, Juncker in talks with Trump on may 25, should. July to explore whether there is a Forum for trade negotiations. The waiver by the EU duties on US cars can be according to malmström’s words, but only part of a larger trade agreement.
The “business week” reported, citing diplomats, the retaliatory customs duties on cars could be taken in particular coal, pharmaceutical and chemical products. A list could be created by August, it said. In Brussels, the call duties are on Goods to the value of 8.5 billion euros.
The former US Ambassador in Berlin, John Kornblum, the United States on the longer lever
Ex-Ambassador Kornblum EU is in a weak Position
According to the former US Ambassador to Germany, John Kornblum, the EU has in the trade conflict with the United States, however, hardly suitable pressure medium. “The United States is at the peak of their Power,” said the US Diplomat at a meeting of the employers ‘ Association southwest metal in Ludwigsburg on the theme of “America first – Germany load?”.
“There is no area of public or private life where you can hurt us, we must say, unfortunately,” said Kornblum, with a view on the reactions of the EU to the U.S.-punitive tariffs. To try a free trading system without the United States to build up, is “self-murder”. The EU trade agreement with Japan is “nice”, there is nothing to bring but Kornblum said. “The United States will remain the core of this world”.
tko/ul (rtr, afp, dpa)