EU OKAY on hitting U.S. with tariffs

EU OKAY on hitting U.S. with tariffs

Officials from the European Union gave the OK on May 7, to slap the U.S. with possible tariffs on products worth about $300 million. The decision comes after talks between the two nations reached a deadlock on whether or not to grant compensation to the EU for steel tariffs the U.S. hit them with. The European Commission reported the 15-nation bloc agreed to support the proposal of retaliatory tariffs on a wide range of U.S. products that is scheduled to take effect, June 18. Meanwhile, the EU and U.S. are seeking ways to resolve the dispute so they can avoid what many term as an all out ’war on trade.' Sources say the EU may decide to impose the measures then delay compliance just to give the U.S. time to provide compensation or grant exemptions on the original tariffs. EU officials speculate the EU will likely step up efforts to negotiate an agreement that includes both compensation and product exclusions from the U.S. safeguard action. An official request was also presented to establish a World Trade Organization panel to decide on the legality of U.S. measures.