EU countries unanimously back retaliatory duties on US exports: Source says

Ever since the United States declared additional 25 per cent tariff on steel and 10 per cent on aluminium imported from its three important trading allies like the European Union, Canada and Mexico, the latter started planning retaliatory measures against the US. Yesterday, on June 14, 2018, all the European Union countries unanimously backed passing retaliatory measures on 2.8 billion euros (US$3.3) worth of US products, said the European Union sources.

However, the European Commission is yet to adopt the measures. The next scheduled meeting is on June 20 and the measures are expected to be in place by late June and early July.

On June 7, the European Union had declared to impose 25 per cent duties on US goods such as orange juice, bourbon, jeans, and motorcycles in response to the US’ additional tariffs, which they consider unacceptable, as it may affect their exports of 6.4 billion euros.

As soon as the US declared its additional tariff plans on imported aluminium and steel, The European Commission President Jean-Claude Juncker expressed his opinion and said, “I am concerned by this decision. The EU believes these unilateral US tariffs are unjustified and at odds with World Trade Organisation rules. This is protectionism, pure and simple.”

His comments were echoed by EU trade commissioner Cecilia Malmstrom, who declared that: “The EU’s response will be proportionate and in accordance with WTO rules. We will now trigger a dispute settlement case at the WTO.”

In fact, just a day after the US’ tariffs declaration, the EU submitted a request to the WTO for consultations with the US.

In addition, the European Union is assessing the need for measures to prevent a surge on imported aluminium and steel into Europe as non-EU exporters divert product initially bound for the US.