EU plans retaliatory tariffs against U.S.

The European Union (EU) expects to hit U.S. imports with additional duties from July, ratcheting up a transatlantic trade conflict after Washington imposed its own tariffs on incoming EU steel and aluminum.

EU members have given broad support to a European Commission plan to set 25% duties on up to €2.8 billion ($3.3 billion) of U.S. exports in response to what it sees as illegal U.S. action. EU exports that are now subject to U.S. tariffs are worth €6.4 billion. “The Commission expects to conclude the relevant procedure in coordination with member states before the end of June so that the new duties start applying in July,” commissioner Maros Sefcovic said on Wednesday.

That plan also includes duties of between 10 and 50% on a further €3.6 billion of U.S. imports in March 2021 or potentially sooner if the World Trade Organisation has ruled the U.S. measures illegal. U.S. products on the list include orange juice, bourbon, jeans, motorcycles and a variety of steel products.

The European Union, Canada, and Mexico have all responded after U.S. President Donald Trump last Friday ended their exemptions from tariffs of 25% for steel and 10% for aluminum. Canada has announced it will impose retaliatory tariffs on C$16.6 billion ($12.9 billion) worth of U.S. exports from July 1. Mexico put tariffs on American products ranging from steel to pork and bourbon on Tuesday

The European Commission launched a legal challenge against the U.S. tariffs at the World Trade Organisation last Friday.

REUTERS

Adriana Murolo

The Kootneeti Team - European Watch

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The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of The Kootneeti Team

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