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Business / World Business

World aligns against Trump's policies on free trade

Published: 09 Jul 2017 - 12:15 am | Last Updated: 01 Nov 2021 - 10:32 pm
Donald Trump

Donald Trump

By Michael Birnbaum& Damian Paletta / The Washington Post

The growing international isolation of the United States under President Donald Trump was starkly apparent at G20 Summit in Hamburg as the leaders of major world economies mounted a nearly united opposition front against Washington on issues ranging from climate to free trade.
At a gathering of the Group of 20 world economic powers - normally a venue for drab displays of international comity - there were tough clashes with the United States and even talk of a possible transatlantic trade war.
The tensions were a measure of Trump's sharp break with previous US policies. They were also a warning signal of Washington's diminished clout, as the leaders of the other nations who gathered in Hamburg mulled whether to fix their signatures to statements that would exclude Trump or to find some sort of compromise. Two European officials said they were leaning toward a united front against Washington.
German Chancellor Angela Merkel, who faced the difficult job of bridging the differences, made little attempt to paper over the disagreements after the first day of meetings.
"The discussions are very difficult. I don't want to talk around that," Merkel said.
She described the view of most participants that "we need free but also fair trade," a rejection of Trump's skepticism about the value of sweeping free-trade agreements. And she predicted that the lower-level officials charged with negotiating a final statement deep into the night "had a lot of work ahead of them."
Some of the clearest divides had to do with climate change after Trump's decision to pull the United States from the Paris climate accord. There were sharp warnings about US steel policy as Trump mulls restrictions on imports.
The summit was also the venue for the first face-to-face meeting between Trump and Russian President Vladimir Putin, whom US intelligence agencies accuse of intervening in November's election to swing it in favor of the Republicans. The two leaders sat for a 2-hour-and-16-minute meeting, which started out with warm jokes but ended with a disagreement about whether Trump accepted Putin's denial that his country had interfered in the election.
In one of the most consequential decisions of his young administration, Trump could within days impose the restrictions on steel, a move that could affect trade with more than a dozen major countries.
"We will respond with countermeasures if need be, hoping that this is not actually necessary," European Commission President Jean-Claude Juncker told reporters, adding figuratively: "We are prepared to take up arms if need be."
Juncker warned that Europe would respond in days, not months, if Trump announces the restrictions.
The comments made for a remarkable display of disharmony as the gathering got underway. They also were a reflection of how European officials not only do not fear Trump but also see much to gain from opposing him. Trump is deeply unpopular in Europe, and politicians here can get a boost when they emphasize their differences.
Commerce Secretary Wilbur Ross has nearly finished a multi-month review of US steel imports, and he has said that the large amount of steel imported by the United States puts national security at risk because it has weakened the domestic steel industry.
The White House is considering using this rationale to impose new restrictions, either by imposing tariffs or quotas, or a combination of the two.
Ahead of the summit, the White House was close to making a decision, but top Trump administration advisers slowed the process down at the last minute, persuading Trump to meet with other world leaders at the G-20 before deciding how to proceed.