Sunday

28th May 2023

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 loss on the steel conflict.

According to the Financial Times, a senior US trade official warned that EU retaliations would only amplify the conflict and “undermine the multilateral trade system”. Speaking shortly before the annual meeting of EU leaders and US President George W. Bush in Washington on Thursday, the official said: "If countries start to go down the path of retaliating without waiting for a WTO decision, we will have that option, too. It is best for the WTO to avoid such unilateralism.”

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The EU member states have to approve the proposal to impose sanctions against US, so far Belgium, France and Portugal have given their support, but some countries, like Germany are afraid it might damage their economy. Last week US circulated a memorandum among all European Union member states suggesting that the EU would postpone its retaliations.

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