Tariffs: EU Retaliation on US Begins June 22

The European Union(EU) has confirmed that its retaliation measures against Donald Trump’s steel and aluminium tariffs will take effect on June 22, targeting some €2.8bn of US products.
The EU’s hit list slaps 25 per cent tariffs on dozens of US products ranging from orange juice to whisky and pleasure boats. The move is part of the EU’s response to Mr Trump’s decision to declare steel and aluminium imports into the US market to be a national security risk, and to hit them with punitive duties. Cecilia Malmstrom, the EU’s trade commissioner, said that “the rules of international trade, which we have developed over the years hand in hand with our American partners, cannot be violated without a reaction from our side” “Needless to say, if the US removes its tariffs, our measures will also be removed.” – said Malmstrom. The European Union remains unsatisfied after the White House’s move to extend a decision on metal tariffs. President Donald Trump decided to delay until June 1 a decision regarding the imposition of a 25 percent levy on steel imports and a 10 percent duty on aluminum for Mexico, Canada, and the EU. The European Union, which has been temporarily exempted from the tariffs, said the delay prolongs uncertainty for businesses, which are already suffering from the U.S. plans.

“The U.S. decision prolongs market uncertainty, which is already affecting business decisions. The EU should be fully and permanently exempted from these measures, as they cannot be justified on the grounds of national security,” the European Commission, the executive arm of the EU, said in a statement Tuesday morning. The EU’s argument is that it’s not causing overcapacity in the metal industry and, as a result, it should not be punished with higher tariffs. “On the contrary, the EU has over the past months engaged at all possible levels with the U.S. and other partners to find a solution to this issue,” the statement said.