EU seeks consultations with US at WTO in response to additional aluminium and steel tariffs

As soon as the Trump Government announced its final decision on Thursday, May 31, 2018, to impose additional 25 per cent tariffs on imported steel and 10 per cent on aluminium on the European Union, Mexico, and Canada, the EU decided to go ahead with its countermeasures. On Friday morning, June 1, 2018, the EU submitted a request for consultations with the United States on aluminium and steel tariffs, under the dispute settlement framework of the World Trade Organisation (WTO).

The request for consultations formally initiated a trade dispute in the WTO. After 60 days, if consultations fail to resolve the dispute, the EU will request adjudication by a panel.

The European Union Trade Commissioner, Cecilia Malmstrom said, “We are not in a trade war, but we are in a very difficult situation caused by the United States. I would not use the term ‘trade war’ because it has a psychological effect.” But she added: “The US is playing a dangerous game here.”

In response to the tariffs, EU commented that Donald Trump’s decision to impose tariffs was nothing more than pure protectionist and illegal.

Nonetheless, the EU has not made any final decision yet on counterattacks against the US but has a list of products ready on which it may impose retaliatory duties. The final decision is expected to arrive within weeks, after a round of discussion among member state diplomats. Under WTO rules, EU retaliatory measures cannot come into force until June 20 at the earliest.