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EU says offer to US may not be enough to dodge tariffs on metal imports

The European Union's trade chief said Washington appeared unsatisfied with the bloc's proposal for greater market access to U.S. industrial products in exchange for a permanent exemption from tariffs on metal imports from Europe, Reuters reported.

"I think they don't think it is enough," said EU Trade Commissioner Cecilia Malmstrom, who spoke with U.S. Commerce Secretary Wilbur Ross after the proposals were made public.

Malmstrom later said during a May 22 news conference that even if European producers escaped tariffs, they were unlikely to have unrestricted access to U.S. markets. "There have been signals from the U.S. that the exemptions will not be prolonged, so either they will be imposed on us on June 1, or there will be other sorts of limiting measures."

Last week, the EU said it is willing to discuss four areas, including greater market access for industrial products such as cars, on the condition that the exemption, which U.S. President Donald Trump extended until June 1 pending the outcome of talks, is made permanent.

"I think that on June 1, we will have another deadlock," Luxembourg Foreign Minister Jean Asselborn said. "Perhaps we will take a step forward in terms of what we can offer the Americans. It could be that we move towards quotas. Everything is open, but it's difficult."

Trump in March announced tariffs of 25% on global steel imports and 10% on aluminum imports. So far, Argentina, Australia, Brazil and South Korea have been granted permanent exemptions.

A Bloomberg report in early May said the EU might agree to quotas on its aluminum and steel shipments to the U.S. to avoid a confrontation. According to Reuters, Malmstrom said she could not imagine the EU accepting quotas unless they were set at the level of exports in recent years.