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16th Apr 2024

EU might postpone sanctions against US

The US has circulated a memorandum among all European Union member states suggesting that the EU would postpone its planned mid-June retaliation against US protective steel import tariffs.

According to the Financial Times, EU is believed not to have answered to the US suggestion, however it is also said that Brussels might consider it, but only on certain conditions. If the Commission decides to discuss the extension, the US has to be ready for different concessions, like lowering duties on other products.

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Last week director- general of the EU Commission's trade directorate, Peter Carl, was asked whether the extensions on the US sanctions could be possible, but he refused to comment on it. His refusal to respond was seen as a sign that the EU might consider the discussion with US, reports the Financial Times.

US President George W. Bush and EU leaders are going to meet in Washington on May 2, where the Europeans are expected to press for the concessions. Last week the EU trade commissioner Pascal Lamy said that the EU public opinion was for an action against US, but also stressed that early retaliation might amplify the conflict.

EU public demands retaliation against US

Political, public and media pressure is growing in the European Union to retaliate against US protective steel import tariffs. According to the Financial Times, the EU has warned that striking back is crucial as otherwise it will weaken the public support for open trade.

US threatens EU with retaliation

The US has warned that it might retaliate if the EU decides to go ahead with its planned mid-June retaliation against US protective steel import tariffs. The EU is considering 100 per cent tariffs on different US goods, like rice, citrus fruit and clothing, if Washington refuses to compensate EU losses on the steel conflict.

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