EU decides to drop the retaliatory tariffs against US

EU decides to drop the retaliatory tariffs against US

According to reports, diplomats, representing the 15 member states of the EU stated in Brussels that they believe there is no need for an immediate retaliation against the US safeguard measures. Bush administration implemented hefty tariffs on imported steel, in the form of duties upto 30% which led the EU to consider bringing retaliatory tariffs with the fear of a flood of imports diverted from the US, in order to protect their own industry. Yet, the EU, evaluating the current situation, finds that the US exemptions on a large scale exclude more than half of the European steel imports from the safeguard measures and this situation consequently softens the negative effect of US measures. The fact that the steel prices have stabilized recently has also a smoothing effect on the Commission's considerations of a retaliating act. It is believed that under such circumstances there is no ground for retaliation and the Commission recommended to wait until the ruling by the WTO, expected to happen next year. The recommendation will be represented to the foreign ministers of the member state governments on Monday.