The new US ambassador to Germany defended planned US tariffs, but said the ball is in Brussels' court. Grenell already made headlines for his Tweet calling on German companies to "immediately" wind down business in Iran.
Image: picture-alliance/dpa/B.v. Jutrczenka
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Richard Grenell, the new US ambassador in Berlin, said he doesn't see any danger of a trade war breaking out between the US and the European Union, in an interview with the Funke newspaper group published on Saturday.
Ties between the US and the EU have become particularly strained over pending tariffs as well as US President Donald Trump's decision to pull out of the Iran nuclear deal.
"There will be no trade war. This perception is wrong. We are talking with our friends to solve a problem."
Washington is waiting to hear EU proposals before deciding whether to follow a June 1 deadline to impose tariffs.
Germany is "doing a phenomenal job on trade" and Trump only wants "a level playing field."
On Iran, he defended Trump's decision to exit the nuclear deal, saying Washington expects Europe "to help us bring Iran back to the negotiating table."
New US sanctions on Iran could hit Europe
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Toeing the hardline: In the interview, Grenell has made it clear that he will continue to emphasize the Trump administration's more hardline foreign policy objectives in his new role in Berlin.
Off to a rocky start: The US ambassador didn't make many friends in Berlin with his diplomatic approach during the first few days on the job. On Tuesday, Grenell tweeted a warning to German businesses in Iran, saying they should "wind down operations immediately."
Andrea Nahles, the head of the Social Democrats, later criticized Grenell's diplomacy style: "It's not up to me to teach the US ambassador how to be diplomatic, but he does seem to need a bit of tutoring."
Heated Trump tariff dispute reaches tipping point
The dispute over proposed steel and aluminum tariffs had its roots in there being a glut of such metals on global markets. Although China was identified as a major culprit, the US applied its levies more widely.
Flanked by steel workers, US President Donald Trump signed a presidential proclamation on global metal tariffs in March, claiming that subsidized imports were damaging domestic producers. The measures were targeted primarily at overproduction by China but, in a tweet, Trump also described the European Union as "wonderful countries who treat the US very badly on trade."
Heavy tariffs had been recommended on China, Russia and other countries by the US Commerce Department. It said that normal methods used to prevent dumping of products at low prices onto US markets had failed. Although China was singled out as particularly responsible for causing the glut in steel and aluminum, the recommendation was that other countries should also take a hit.
China said it would respond to the US plans to impose tariff by adding a 25 percent tariff on products from the US — including pork, wine, apples and ginseng. Washington hit back with a list of technological targets to be slapped with new duties, with Beijing then imposing duties on soybeans — a product for which China is US producers' main market.
Image: picture-alliance/AP Photo/G. Broome
South Korea makes concessions
Among the countries hit by the tariffs was South Korea, which agreed to cut steel exports to the US by 30 percent and accept extended tariffs on South Korea pickup trucks by the US. Seoul also said it would open up its car market more widely to the US, its second-largest trading partner. The Trump administration had instigated talks last year to renegotiate its KORUS trade deal with the US.
The leaders of France, Britain and Germany said they would be ready to retaliate if the EU were not permanently exempted from the tariffs. According to the office of French President Emmanuel Macron, he had discussed the tariffs with Chancellor Angela Merkel and Prime Minister Theresa May. The three hoped the US wouldn't take measures "contrary to transatlantic interests," a spokesperson said.
Image: picture alliance/AP Photo/F. Lenoir
Icons of America
Before the US introduced its temporary waiver on the tariffs for the EU, Brussels had threatened Washington with raising duties on some particularly iconic American goods. They included US bourbon, peanut butter, Harley Davidson motorcycles and blue jeans.
Image: picture-alliance/dpa/C. Charisius
North American neighbors
It's expected that Canada and Mexico could receive longer tariff exemptions. That's because negotiations over the levies have become intertwined with talks about the North American Free Trade Agreement (NAFTA).
Image: picture alliance/AP Photo/J. Bottoni
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Where the tariffs stand: The Trump administration imposed tariffs on aluminum and steel in March, but issued temporary exemptions to certain countries and the EU. The extensions are due to expire on June 1 unless a deal is reached, but Brussels said it wants to secure an exemption before agreeing on concessions. In a tit-for-tat move, the EU has said it will impose its own tariffs on US exports, including bourbon, motorcycles, peanut butter and makeup.
Iran nuclear deal: On Tuesday, Trump announced that the US is leaving an international nuclear deal with Iran and that Washington would reimpose harsh sanctions on the regime. The decision has put Europe in a difficult position as businesses seek to avoid US sanctions penalties and leaders hurry to hold the nuclear accord together.
Who is Richard Grenell: Richard "Ric" Grenell is a 51-year-old former Bush administration diplomatic aide and frequent commentator on the conservative news broadcaster Fox News. Trump nominated him to be the next US ambassador to Germany in September last year. He was sworn in to his new post on May 4.
