© RIA Novosti / Alexei Vitvitskiy fotobanka in the United States and of the European Council. Archival photo© RIA Novosti / Alexei Vitvitskiy the image Bank
The US and the EU have pledged to refrain from imposing new duties during the negotiations of the settlement of trade disputes, said Wednesday the head of the EC Jean-Claude Juncker, citing in particular the automotive industry.
«Today we have agreed with the President to give a reassessment of these measures (the duty on steel and aluminum – ed) at the appropriate time. The same logic applies to the automotive industry, … duties are not to protect national security, they will only undermine economic security,» said Juncker, in his lecture in Washington after talks with President Donald trump.
«Let me give you an example. If the US imposed a 20 percent duty on auto components, and other countries would respond, it would cost the U.S. economy $ 50 billion loss of GDP by 2025,» — said Juncker.
«We agreed that the new duty will be introduced, while we negotiate,» he confirmed.
The US had previously imposed increased duties on import from third countries, including EU States, steel and aluminium products, saying it on national security grounds. The reaction of the European Commission was not long in coming: opened a dispute in WTO with the United States on these tariffs, imposed an additional duty of 25% on imports into the EU of a number of goods from the United States.
In addition, the President of the United States Donald trump threatened with the possibility of imposing import duties to 20% on cars from the EU.