EU trade war: Brussels DEMANDS compensation from USA in solar panel row

Documents filed by Brussels with the World Trade Organisation (WTO) today say Germany was a major exporter of the renewable energy technology to the US. 

But it says the harsh fees imposed by President Trump’s administration had damaged trade.

In its claim, the EU insists the steep tariffs, which are part of Mr Trump’s ‘America First’ policy, broke WTO rules. 

The latest complaint could be the start of a trade war the President will have to fight on multiple fronts following similar claims by China, Taiwan and South Korea, all of which are big producers of solar panels.

However, the EU claim only goes as far as accusing the US of going against WTO rules.

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The claim comes amid a souring of relations between the EU and America, with Mr Trump claiming in a TV interview last month “the European Union has been very, very unfair to the United States”.

He added it would “turn out to be very much to their detriment”, before going on to insist his issues with the EU “may morph into something very big from that standpoint, from a trade standpoint”.

The former reality TV star has talked about protecting American manufacturers from foreign competition since assuming office, accusing other countries of “making our products, stealing our companies and destroying our jobs”.

His government imposed the tariffs last month after a study by the US International Trade Commission (ITC) concluded American solar panel manufactures were being undercut by cheaper imports.

The ITC report accused China of selling “artificially low-priced” solar components in the US, made cheaper by state subsidies.

Under the tough new rules, solar cells and modules coming from overseas are slapped with a 30 percent tariff, falling to 15 percent after four years.

However the policy does allow 2.5 gigawatts of solar cells – enough to produce around 11.5 million panels – to be imported tariff-free each year.

In response, China, the world’s biggest solar panel manufacturer, said the move would further damage the global trade environment.

China is the US’s largest trading partner and government spokesman Wang Hejun said Beijing expressed “strong dissatisfaction” with the plans.

He warned “together with other WTO members, China will resolutely defend its legitimate interests”.

Also included in the new rules are washing machines, which are subject to an eye-watering 50 percent tariff in some cases.


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