Trade Cases
EU Retaliatory Tariffs to Begin on Friday
Written by Sandy Williams
June 21, 2018
The European Commission announced that $3.2 billion in tariffs (€2.8 billion) on imports from the United States will go into effect on Friday, June 22. The “rebalancing measures” include steel and aluminum, agricultural goods and various other products and will remain in effect for as long as the U.S. tariffs on steel aluminum are in place.
“We did not want to be in this position. However, the unilateral and unjustified decision of the U.S. to impose steel and aluminum tariffs on the EU means that we are left with no other choice,” said Commissioner for Trade Cecilia Malmström. “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. Our response is measured, proportionate and fully in line with WTO rules. Needless to say, if the U.S. removes its tariffs, our measures will also be removed.”
The EU is basing its rebalance of bilateral trade with the U.S. on the value of its steel and aluminum exports affected by the Section 232 tariffs. The value is determined to be €6.4 billion ($7.4 billion). Of this amount, the EU will rebalance on €2.8 billion worth of exports immediately. The remaining rebalancing on trade valued at €3.6 billion ($4.17 billion) will take place in three years or following a positive finding in the WTO dispute settlement.
The rebalancing measures are part of a three-pronged effort in response to Section 232 tariffs by the United States. A safeguard investigation was launched by the European Commission on March 26 to protect the European market from diversion of steel from the U.S. The commission has nine months to decide if safeguard measures are necessary, and a decision could be forthcoming this summer. The EC also launched legal proceedings against the U.S. in the WTO on June 1.
The EC will monitor aluminum imports to determine if safeguards are required in that sector.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
CRU: Turkey imposes tariffs on steel imports; Malaysia launches AD probe
Ankara has placed anti-dumping duties of ranging from 6.10% to 43.31% on hot-rolled steel sheet from China, India, Japan, and Russia. Meanwhile, Malaysia has announced it will investigate allegedly dumped steel wire rod from China, Indonesia, and Vietnam.
Price on trade: The excess capacity threat moves closer to home
The Global Forum on Steel Excess Capacity (GFSEC) reaffirmed on Oct. 8 what domestic steel producers have long known—the threat of excess steel capacity never disappeared and is evolving. China’s steelmakers are boosting capacity and exports, echoing the 2016 global steel crisis. There is no doubt that China is successfully weaponizing excess capacity across many industries, and the fatal damage to domestic production and national security undermines the interests of all market-oriented countries. The question now is: How will GFSEC countries respond?
US bans steel made with forced labor from Baowu subsidiary
The US has banned imports from a subsidiary of the world’s largest steelmaker because it is allegedly using forced labor to produce steel products.
China challenges Canada’s tariffs on steel, aluminum, EVs
China is challenging Canada’s decision to put tariffs on imports of Chinese steel, aluminum, and electric vehicles.
Leibowitz: Harris, Trump don’t talk much about steel and trade – because they (mostly) agree
By most accounts, the issues that are most important for voters in this election are the economy, immigration, and abortion. International trade policy plays a key role in at least two of those three (the economy and immigration). Both presidential candidates recognize that trade and tariffs are an important focus. And “America first” is a rallying point for both candidates.