ALSO READEurope targets U.S. bourbon, bikes, blue jeans for trade riposte Analysis - Trump's trade tariffs: Long on rhetoric, short on impact? Trump's trade policies jeopardise jobs and prosperity - German minister Euro zone business growth lost some steam in Feb but still robust Euro zone businesses lose some steam but are still fired up
By Michael Nienaber
BERLIN (Reuters) - U.S. President Donald Trump's tariffs on steel and aluminium imports will cost jobs and growth, German Economy Minister Brigitte Zypries told Reuters on Sunday, adding that Europe and other free traders should not let themselves be divided.
Trump set import tariffs on Thursday of 25 percent on steel and 10 percent on aluminium, to come into force in 15 days, stoking fears of a tit-for-tat trade war that could drive up prices and depress growth around the globe.
"Trump's policies are putting the order of a free global economy at risk," Zypries told Reuters in an emailed statement.
"He does not want to understand its architecture, which is based on a rule-based system of open markets. Anyone, who is questioning this, is jeopardising prosperity, growth and employment," Zypries said.
U.S. steel- and aluminum-consuming industries have also criticized the tariffs as damaging them with higher costs.
Germany and its allies must now safeguard the free trade order and avoid being divided by Trump's offer to exempt some allies such as Mexico, Canada and Australia from the proposed tariffs, Zypries said.
CRACKS IN THE ALLIANCE
The European Union and Japan urged the United States on Saturday to grant them exemptions from the metal import tariffs, with Tokyo calling for "calm-headed behaviour" in a dispute that threatens to spiral into a trade war.
Such a move would be particularly hurtful for Germany, Europe's largest economy, since the U.S. is one of the biggest export destinations for German auto manufacturers and cars and vehicle parts are also its biggest source of export income.
"But if the new tariffs really hit Europe, we will take countermeasures," Vestager said.
Such measures could include European Union tariffs on U.S. oranges, tobacco and bourbon. Harley-Davidson motorcycles have also been mentioned, targeting Republican U.S. House of Representatives Speaker Paul Ryan's home state of Wisconsin.
"We have been building a global trading system for decades. European prosperity and millions of jobs depend on it - and Europe will not to stand idly by if someone puts the order of free world trade at risk," Vestager added.
(Reporting by Michael Nienaber, editing by Louise Heavens)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)