EU goes to WTO over Trump tariffs, counter tariffs ready


The European Union is taking legal action against the import duties imposed by US President Trump at the World Trade Organisation (WTO). Europe has also prepared a list of US products for which it, in turn, wants to impose tariffs if the US does not remove its duties.
The EU is taking this step because of the US's general import duty of 10 percent and the 25 percent duty on steel and aluminum. Earlier , China and Canada also went to the WTO to challenge the new US trade tariffs.
“The EU is unequivocally convinced that these tariffs constitute flagrant violations of fundamental WTO rules,” the European Commission wrote.
Trump already paralyzed WTOChina and Canada’s complaints are unlikely to amount to anything. While the WTO is a sort of arbiter of global free trade, Trump has all but paralyzed the organization in 2019 by refusing to appoint new members to the main dispute resolution body.
The fact that the EU is nevertheless going to the WTO is because it does not want to leave the trade tariffs completely unanswered, a source at the Commission told the ANP news agency. "The EU's aim is mainly to confirm that internationally agreed rules matter," the Commission states.
Before an official complaint is made, the US and the EU will first enter into discussions on the matter. These discussions will take place sometime in the coming weeks.
EU counter-tariffs: 95 billion eurosThe European Commission has already published a list of US products that could face counter-tariffs if negotiations with the US to lift tariffs fail. It includes 218 pages of US products worth €95 billion.
The list mainly includes agricultural and industrial products such as whiskey, motorcycle parts and aircraft. The American aerospace company Boeing could also be affected. The Commission also wants to limit EU exports of steel scrap and chemical products, worth 4.4 billion euros.
There are no pharmaceutical products or products that are difficult to import elsewhere on the list, a Commission source said. Producers or other stakeholders can also lodge objections to the list until June 10.
Different list than last monthThe list differs from the one published by the Commission last month in retaliation. The EU decided to pause these countermeasures for 90 days after US President Donald Trump did the same for a blanket 20 percent import tariff. The pause runs until July.
Below you can see that according to economist Steven Brakman, Trump's levies have a direct impact:
RTL Nieuws