G7 trade ministers meet in Paris on Tuesday to discuss issues including critical minerals but are not expected to directly address the latest U.S. threat to impose additional tariffs on European cars.
The meeting, scheduled to last until Wednesday, comes as war in the Middle East upends the global economy by closing the Strait of Hormuz, through which a fifth of the world’s oil normally passes.
President Donald Trump’s threat on Friday to increase U.S. tariffs on European Union cars and trucks may be addressed separately.
The United States and the European Union reached an agreement last summer to cap U.S. tariffs on EU cars and parts at 15%, lower than the 25% tariffs Trump has imposed on many other trading partners.
In late March, EU lawmakers gave the green light to a deal with Trump, but with conditions. It must also be approved by member states.
Trump accused the EU of failing to abide by the deal and said on Friday he would raise auto tariffs in response.
The office of France’s junior trade minister Nicolas Forissier said earlier this week that Europeans would discuss Trump’s threats but “not within the framework of the G7.”
U.S. Trade Representative Jamieson Greer is expected to meet with European Union Trade Commissioner Maros Sefcovic in the French capital.
They also plan to hold a meeting with French Economy Minister Roland Lescourt.
Greer said in a video message at an informal meeting hosted by France’s business community on Tuesday that the United States views “trade policy primarily as a domestic policy.”
“The United States is acting unilaterally but also with willing partners,” he said.
“We view the priorities pursued by France as host of this year’s G7 as complementary to U.S. trade efforts,” he added.
On Wednesday, G7 trade ministers are expected to discuss four priorities identified by the French presidency of the group.
-Four priorities-
The first is to find collective and effective responses to industrial overcapacity that undermines free trade.
Even if the discussion does not formally target China, Chinese subsidies for certain industries have created trade tensions for years.
The second priority is economic security, specifically ensuring and diversifying the supply of critical minerals that are essential for the production of strategic products such as computer chips, electric vehicle batteries and super magnets.
France favors a system of producing, processing and consuming countries working together to implement good practices.
Ministers will also discuss the failure of the latest round of World Trade Organization talks in March, whose role as a trade referee has been paralyzed by the United States for years.
“Our goal is to better adapt the organization to current challenges,” Foulissier’s office said.
Ministers will also discuss cross-border sales through e-commerce sites, which generate a large number of small parcels that evade duties and constitute unfair competition for local retailers.
The United States last year suspended tariff exemptions for small packages worth less than $800, and the European Union will impose unified tariffs on packages worth less than 150 euros this summer.
The G7 heads of state and government summit is scheduled to be held from June 15 to 17 in the eastern town of Evian on the shores of Lake Geneva.
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This article was generated from automated news agency feeds without modifications to the text.
