Hopes of smooth US-EU summit hit snag over China-related trade issues

Washington pushing Brussels to slap 25 per cent tariff on steel products from non-market economies, shorthand for Beijing

In return, EU wants permanent revocation of Trump-era tariffs on bloc’s products, but US seeks option to reimpose duties

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European Commission President Ursula von der Leyen is slated to meet US President Joe Biden in Washington on Friday. Photo: AFP

Published: 3:10am, 19 Oct 2023Updated: 4:53am, 19 Oct 2023

US and EU hopes of a smooth summit date in Washington on Friday are now in danger of being hijacked by an awkward third wheel: China.

The transatlantic allies on Wednesday were frantically negotiating a statement to crown US President Joe Biden’s meeting with European Commission and Council presidents Ursula von der Leyen and Charles Michel, but arguments over China-related issues have pushed preparatory talks into overdrive.

On trade, an expected deal on steel and aluminium is beginning to look doubtful. The US wants the EU to probe overcapacity in the global industries of the two metals, with a view to slapping tariffs of 25 per cent on steel products and 10 per cent on aluminium from non-market economies – shorthand for China, by far the world’s biggest exporter of both product groups.

In return, the EU wants the permanent and full revocation of all Trump-era tariffs on its products, a deal it was hopeful of securing as recently as last week.

This week, however, Washington said it wanted to insert a clause that would allow it to reimpose the duties in the future, leaving European counterparts fuming, according to people involved in the talks.

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