Germany urges EU unity in trade conflict with US

BERLIN, May 02 (Reuters): A top German minister urged European Union (EU) states to agree a common stance to negotiate with the United States on trade, acknowledging differences with France, after President Donald Trump extended a temporary reprieve for the EU on steel and aluminum tariffs.
Although the EU has called for a permanent exemption from the tariffs, arguing the one-month extension is causing uncertainty among businesses, there are differences in emphasis among member states.
German Economy Minister Peter Altmaier told Germany's ARD television on Wednesday the EU faced a difficult situation which required a "fair solution in negotiations between the Europeans and Americans".
Asked if it would be easier to find a common stance with France or formulate an offer to the United States (US), he said: "Both are equally difficult."
"The EU must agree on what it is willing to talk about," Altmaier said, adding it was another question whether negotiations with the United States would follow.
The priority for export-oriented Germany, Europe's biggest economy, is to get a broad agreement to lower tariffs across a broad spectrum of products, especially in manufacturing.
By contrast, France has said it agrees that there is overcapacity in the steel and aluminum sectors and that it is ready to work with the United States and other partners to find a solution to those issues.
It insists, however, that it can only discuss this if it has assurances that the EU will be permanently excluded from unilateral tariff increases.
An earlier report from Washington adds: US President Donald Trump has postponed the imposition of steel and aluminum tariffs on Canada, the European Union and Mexico until June 1, and has reached agreements for permanent exemptions for Argentina, Australia and Brazil, the White House said on Monday.
The decisions came just hours before temporary exemptions from the tariffs on these countries were set to expire at 12:01 a.m. (0401 GMT) on Tuesday.
In a statement, the White House said the details of the deals with Brazil, Argentina and Australia would be finalised shortly, and it did not disclose terms.
"The administration is also extending negotiations with Canada, Mexico, and the European Union for a final 30 days. In all of these negotiations, the administration is focused on quotas that will restrain imports, prevent transshipment, and protect the national security," the White House added.
A source familiar with the decision said there would be no further extensions beyond June 1 to stave off tariffs.
Trump on March 23 imposed a 25 per cent tariff on steel imports and a 10 per cent tariff on aluminum, but granted temporary exemptions to Canada, Mexico, Brazil, the EU, Australia and Argentina. Trump has also granted a permanent exemption on steel tariffs to South Korea as part of a revision of a free trade pact that he sharply criticised.
Trump has invoked a 1962 trade law to erect protections for US steel and aluminum producers on national security grounds, amid a worldwide glut of both metals that is largely blamed on excess production in China.
The tariffs, which have increased frictions with US trading partners worldwide and have prompted several challenges before the World Trade Organisation, are aimed at allowing the two US metals industries to increase their capacity utilization rates above 80 per cent for the first time in years.
Trump administration officials have said that in lieu of tariffs, steel- and aluminum-exporting countries would have to agree to quotas designed to achieve similar protections for US producers.