EU Counter-Tariffs Hit Linepipe
The European Commission (EC) June 6 announced a list of US goods on which it will levy punitive tariffs, in response to US tariffs imposed on EU steel and aluminium a week ago.
The products listed were already communicated May 19 to the World Trade Organisation, prior to the US tariff imposition last month and the EC's resultant June 6 decision. Many are US agricultural exports including Bourbon whiskey, along with clothing items. However some relate to raw steel, tool steel and steel wire, and some pipe products.
Larger pipes “of a kind used for oil and gas pipelines” are excluded from the list.
Some, possibly smaller, iron or non-alloy steel “gas pipes” though are included – but such pipe "of a kind used for oil or gas pipelines or casing and tubing of a kind used in drilling for oil or gas" is also excluded.
Included though are "containers of iron or steel, seamless, for compressed or liquefied gas." All but one of the products on the list are to be subject to 25% EU duty.
The EC said it expects to conclude the relevant procedure in co-ordination with EU member states before the end of June so that the new duties start applying in July. The full list can be seen here.
The EC said that US measures will target EU exports worth €6.4bn (at 2017 values) and that therefore the EU will exercise its rights immediately to target US products valued at up to €2.8bn, with the remaining €3.6bn balance targeted at a later stage – in three years' time, or after a positive finding in WTO dispute settlement if that should come sooner.
Canada and Mexico have already responded with similar lists; they and the EU were targeted by the 25% tariff on steel and 10% tariff on aluminium announced by US commerce secretary Wilbur Ross May 31.
EU trade commissioner Cecilia Malmstrom said: "This is a measured and proportionate response to the unilateral and illegal decision taken by the US to impose tariffs on European steel and aluminium exports. What's more, the EU's reaction is fully in line with international trade law."