EU to retaliate with tariffs on US products as soon as July
The European Commission endorsed a decision on Wednesday to impose additional tariffs on a list of US products.
The EC notified the World Trade Organization of its intention to retaliate after the US implemented tariffs on their steel and aluminium exports, after launching a legal challenge against the US tariffs at the WTO last Friday.
This rebalancing of tariffs is in line with WTO rules which allows for a rebalancing corresponding to the damage caused by the US measures with EU exports worth €6.4bn (2017) being affected.
The EU will exercise its rights on US products implementing tariffs of up to €2.8bn (duties of between 10% and 35% on a spread of almost 200 US products) and in the future it will continue to rebalance trade by adding further €3.6bn tariffs in the case that the WTO rules in its favour or the issue is still going on in three years time.
Commissioner for Trade Cecilia Malmström said: "This is a measured and proportionate response to the unilateral and illegal decision taken by the United States to impose tariffs on European steel and aluminium exports. What's more, the EU's reaction is fully in line with international trade law. We regret that the United States left us with no other option than to safeguard EU interests."
The first round of tariffs could be imposed as soon as next month since EU members have given broad support to the European Commission’s plan.