🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

EU starts retaliation process against U.S. tariffs

Published 16/03/2018, 16:49
© Reuters. European Union flags flutter outside the EU Commission headquarters in Brussels

By Philip Blenkinsop

BRUSSELS (Reuters) - The European Commission called for industry views on Friday on a list of U.S. products it will subject to import tariffs, the first step towards measures to counter planned U.S. taxes on European steel and aluminium.

The European Union wants to be exempted from U.S. duties of 25 percent on steel and 10 percent on aluminium that U.S. President Donald Trump approved last week. U.S. Commerce Secretary Wilbur Ross and EU Trade Commissioner Cecilia Malmstrom meet next week to discuss the issue.

The European Commission, which coordinates trade policy for the 28 EU members, has said that, if the EU is not exempted, it should set duties of 25 percent on a range of U.S. products, whose annual imports to the European Union are worth 2.8 billion euros ($3.45 billion).

The 10-page list of products the EU may subject to tariffs ranges from rice to orange juice, make-up, motorcycles, motor boats and stainless sinks. It also includes many metals products for use in construction and industry.

Some of the products, worth 2.8 billion euros, could be subject to duties within months. The EU says the U.S. cannot use national security as a justification for its metals tariffs, which means Europe can respond with "rebalancing" measures.

"We feel we are on very strong legal grounds," an EU official said on Friday.

A second group of products would only incur duties if the WTO later declared the U.S. tariffs illegal or after a period of three years.

The two product sets combined would aim to counter-balance the damage of U.S. measures to the bloc's 6.4 billion euros of aluminium and steel exports to the United States.

The Commission has asked "private stakeholders" affected by the U.S. tariffs and the EU's possible response by March 26 after which it will present a formal proposal.

The EU's 28 member states would also have to agree on any action.

It would notify the World Trade Organization (WTO) of potential counter-measures by May 23, or within 60 days of U.S. tariffs coming into force. The European Union would have to enact those measures in the following month.

Trump has ordered Ross to discuss "horrific" EU trade tariffs and barriers with Brussels and has also threatened to hit EU cars.

The EU disputes Trump's line on tariffs and his emphasis on cars, for which the U.S. tariff, at 2.5 percent, is lower than the EU's 10 percent. For other products, such as trucks, U.S. tariffs are higher.

© Reuters. European Union flags flutter outside the EU Commission headquarters in Brussels

"We are not negotiating with the United States our exemption... It is not acceptable to try to link a solution to this and any question to market access or trade negotiations," the EU official said. ($1 = 0.8114 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.