Trump's tariffs are illegal and a 'mistake': French President Emmanuel Macron
France's President Emmanuel Macron talks with U.S. President Donald Trump after the family photo on the first day of the G20 summit in Hamburg, Germany on July 7, 2017. (AP / Michael Sohn)
The Associated Press
Published Friday, June 1, 2018 9:41AM EDT
Last Updated Friday, June 1, 2018 11:57AM EDT
PARIS -- French President Emmanuel Macron has told U.S. President Donald Trump that the new U.S. tariffs on European, Mexican and Canadian goods are illegal and a "mistake."
Macron's office said in a statement Friday that the two presidents spoke by phone after Trump's administration announced the decision Thursday to impose 25 per cent tariffs on steel and 10 per cent tariffs on aluminum.
The European Union is planning retaliatory tariffs on U.S. steel and food goods in the coming weeks, once it calculates the exact cost to EU companies of the U.S. tariffs. Macron pledged the riposte would be "firm" and "proportionate" and in line with World Trade Organization rules.
The U.S. decision came despite last-minute talks in Paris this week to try to reach a deal.
As its first step to challenge the U.S. tariffs, the EU on Friday formally filed a request for consultations at the WTO.
The two sides will discuss the matter and try to reach a deal. If that fails to solve the matter, after 60 days the EU can ask a WTO panel to rule on the case.
The EU's trade chief, Cecilia Malmstrom, said that the U.S. decision to impose tariffs "is further weakening the Trans-Atlantic relations."
She said the measures "will cause a lot of damage to our steel and aluminum industry" and risk hurting global economic growth.
She dismissed the Trump administration's argument that the tariffs are needed for U.S. national security reasons.
"Internal security is not relevant. It is pure protectionism," she said.
Companies around the world have expressed concern about the tariffs and the risk that it could escalate into a trade war, in which both sides hit each other with tit-for-tat measures.
Germany's Volkswagen, Europe's largest automaker, said no side would win a trade war.
In a statement to The Associated Press, the company said it views the tariffs with "regret and concern."
"There are fears that this marks the start of a negative spiral of measures and countermeasures where there will ultimately be no winners," the company said.
The Wolfsburg-based company is calling for dialogue between the U.S. and the EU within recognized World Trade Organization principles "in order to prevent any long-term economic damage."