EU to impose 5% duty on imports from US to retaliate US tariffs

EU to impose 5% duty on imports from US to retaliate US tariffs

European Union (EU) Commission is reported to be in preparation of imposing 5% duty today on US imports in response to duties of US that are found to be illegal by World Trade Organization (WTO). The 5% duty which is reported be imposed at the first phase will be increased by 1% each month and reach 17% levels by March 2005. Moreover, depending on US reaction to the duties, the rate of the duties is reported to be revised. In the statement released from Brussels, it is stated that the repeal of US duties has been expected long enough however, as no change is made or regulation is implemented on US duties up till now, EU is determined to impose retaliation tariff on US products, although this may give rise to a trade war with its largest trading partner. Moreover, it is stated that appreciation of Euro against US Dollar, leading cheaper US goods to take place on European market is the other factor, which led EU Commission to take the decision of retaliating US duties. The new duty will be applied on imports of agricultural products, jewelry, cotton and textiles, leather, paper, steel, nuclear reactors and toys. Meanwhile, according to the official records, the duty imposed by EU on steel imports was an average of 1.7% since 2002. However, EU has decreased the duty to the level of 0% to be valid for imports of steel products as of January 1, 2004.