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'Trade war a reality' French finance minister warns | |
(about 1 hour later) | |
A trade war is now a reality, French Finance Minister Bruno Le Maire has warned as G20 ministers gather for a summit in Argentina. | A trade war is now a reality, French Finance Minister Bruno Le Maire has warned as G20 ministers gather for a summit in Argentina. |
The current US trade policy of imposing unilateral tariffs is based on "the law of the jungle", he said. | The current US trade policy of imposing unilateral tariffs is based on "the law of the jungle", he said. |
But US Treasury Secretary Steven Mnuchin defended the tariffs and urged the EU and China to open their markets to allow free competition. | But US Treasury Secretary Steven Mnuchin defended the tariffs and urged the EU and China to open their markets to allow free competition. |
Last week, US President Donald Trump described the EU as a foe on trade. | Last week, US President Donald Trump described the EU as a foe on trade. |
Mr Trump later threatened to impose tariffs on all $500bn (£380bn) of Chinese goods entering the US in a growing trade row. | Mr Trump later threatened to impose tariffs on all $500bn (£380bn) of Chinese goods entering the US in a growing trade row. |
The US has large trade deficits with both the 28-member EU and China. | The US has large trade deficits with both the 28-member EU and China. |
The two-day talks in Buenos Aires bring together finance ministers and central bankers of the world's top 20 economies. | The two-day talks in Buenos Aires bring together finance ministers and central bankers of the world's top 20 economies. |
What did the French minister say? | What did the French minister say? |
"World trade cannot base itself on the law of the jungle and the unilateral increase of tariffs is the law of the jungle," Mr Le Maire told AFP news agency. | "World trade cannot base itself on the law of the jungle and the unilateral increase of tariffs is the law of the jungle," Mr Le Maire told AFP news agency. |
"The law of the jungle, the law of the fittest, this cannot be the future of global trade relations. | "The law of the jungle, the law of the fittest, this cannot be the future of global trade relations. |
"The law of the jungle will only turn out losers, it will weaken growth, threaten the most fragile countries and have disastrous political consequences," Mr Le Maire said. | "The law of the jungle will only turn out losers, it will weaken growth, threaten the most fragile countries and have disastrous political consequences," Mr Le Maire said. |
He added that a trade war was now a reality, and that the EU could not consider negotiating a free trade deal with the US without America first withdrawing its tariffs on steel and aluminium. | He added that a trade war was now a reality, and that the EU could not consider negotiating a free trade deal with the US without America first withdrawing its tariffs on steel and aluminium. |
What about Mr Mnuchin's comments? | What about Mr Mnuchin's comments? |
The US treasury secretary backed President Trump's stance on trade with the EU and China, saying they both need to open their markets. | The US treasury secretary backed President Trump's stance on trade with the EU and China, saying they both need to open their markets. |
"My message is pretty clear, it's the same message the president delivered at the G7 (last month in Canada): if Europe believes in free trade, we're ready to sign a free trade agreement with no tariffs, no non-tariff barriers and no subsidies. It has to be all three," he said. | "My message is pretty clear, it's the same message the president delivered at the G7 (last month in Canada): if Europe believes in free trade, we're ready to sign a free trade agreement with no tariffs, no non-tariff barriers and no subsidies. It has to be all three," he said. |
Turning to China, Mr Mnuchin warned punitive tariffs against Beijing were "a realistic possibility". | Turning to China, Mr Mnuchin warned punitive tariffs against Beijing were "a realistic possibility". |
"We've been very clear with our objectives," he added. | "We've been very clear with our objectives," he added. |
How has the tariffs row worsened? | How has the tariffs row worsened? |
On 1 June, the Trump administration introduced tariffs of 25% on steel and 10% on aluminium imported into the US. | On 1 June, the Trump administration introduced tariffs of 25% on steel and 10% on aluminium imported into the US. |
Mr Trump argues that global oversupply of steel and aluminium, driven by China, threatens American producers, which are vital to the US. | Mr Trump argues that global oversupply of steel and aluminium, driven by China, threatens American producers, which are vital to the US. |
The US president believes that if you have a trade deficit - if you import more than you export - you are losing out. | The US president believes that if you have a trade deficit - if you import more than you export - you are losing out. |
The EU later introduced retaliatory tariffs on a range of US goods, including bourbon whiskey, Harley Davidson motorcycles and orange juice. | The EU later introduced retaliatory tariffs on a range of US goods, including bourbon whiskey, Harley Davidson motorcycles and orange juice. |
On China, Mr Trump warned earlier this week he was ready to slap tariffs on all imports from the country. | On China, Mr Trump warned earlier this week he was ready to slap tariffs on all imports from the country. |
Last week, Washington listed $200bn worth of additional Chinese products it intends to place tariffs on as soon as September. | Last week, Washington listed $200bn worth of additional Chinese products it intends to place tariffs on as soon as September. |
The list named more than 6,000 items including food products, minerals and consumer goods such as handbags, to be subject to a 10% tariff. | The list named more than 6,000 items including food products, minerals and consumer goods such as handbags, to be subject to a 10% tariff. |
It is still under public consultation, to last until the end of August. | It is still under public consultation, to last until the end of August. |
The US and China have already imposed tit-for-tat tariffs of $34bn on each other's goods. | The US and China have already imposed tit-for-tat tariffs of $34bn on each other's goods. |