Mustafa AY – TDO – 22.06.2018 On June 1, US President Donald Trump signed an executive order concerning implementation of extra tariff rates on steel and aliminum imports, which was initially enforced against China. With this, Washington commenced to apply protectionist policy by ignoring its long-lasting economic understanding of neo-liberalism. In other words, USA simply disregarded its praiseworthy minimalist characteristic. However, let all abovementionied aside, what USA is aimed at with its protectionist policies on agenda is to reciprocate and halt China’s expansionist approach in South China Sea and financial endorsement to North Korea in the first place.
The scope of commercial warfare, which USA literally declared against China, expanded to EU stunningly on June 1. Since EU considered itself as a close ally of USA, it didn’t expect USA to enforce extra tariff on EU commodities. EU Trade Commissioner Cecilia Malmström strived for inhibiting the possible implementation of extra tariff on EU products for a long time. She had sequence of compromise-oriented meetings with her US counterparts –Wilbur Ross and Robery Lighthizer- to find an equillibrium point that could help remedy this troublesome issue. More basically, Malmström tried to retain tariff exemption from USA, but disappointed with that President Trump signed presidential decree to enforce extra tariff on EU products like stell and aliminum.
EU Trade Commissioner Cecilia Malmström proposed immediate retaliation to Washington’s decision for agenda. In accordance with the road map of Malmström, EU can rebalance the tariffs by implementing extra tariffs rates on US products such as steel, agricultural products and alcoholic beverages –all together worth to 3,4 billion dolars-. This counter-step requires 28 member nations in EU Commission to reach unanimity.