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Report: EU to urge G-20 finance leaders to keep global economy open

The European Union will urge the top financial officials of G-20 economies to maintain the openness of the world market, Reuters reported, amid concerns of a global trade war sparked by the U.S. plan to impose tariffs on steel and aluminum imports.

Finance ministers and central bank heads from the 20 largest economies are set to discuss the state of the global economy, including risks to growth, at a meeting in Buenos Aires starting March 17.

"We reaffirm our commitment to keep the global economy open and rules-based and global economic cooperation on track," says a draft EU document prepared for the G-20 meeting and seen by Reuters. The document needs approval by European finance ministers.

President Donald Trump said March 1 that the U.S. will tax imports of steel at 25% and aluminum imports at 10%. Foreign governments condemned the move and threatened to hit back, with European Commission President Jean-Claude Juncker calling it a "blatant intervention" to protect the U.S. domestic industry with no discernible national security justification.

Trump also warned that he would impose tariffs on cars imported from Europe if the EU follows through with its promise of retaliation. EU Commissioner for Trade Cecilia Malmstrom said the bloc would consider slapping 25% tariffs on various U.S. exports to Europe, including jeans and bourbon.

Amid the exchange of threats, the head of the World Trade Organization, or WTO, called on nations to avoid triggering the creation of global trade barriers.

"Once we start down this path, it will be very difficult to reverse direction. An eye for an eye will leave us all blind and the world in deep recession," WTO Director General Roberto Azevêdo said March 5. "We must make every effort to avoid the fall of the first dominoes. There is still time."