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June 20, 2018
EU begins to apply retaliation duties in reaction to U.S. steel and aluminium tariffs
On June 20th the European Commission adopted the regulation putting in place the European Union's (EU) rebalancing measures in response to the U.S. tariffs on steel and aluminium. The measures will immediately target a list of products worth 2.8 billion and will come into effect on Friday June 22.
The list of U.S. imports that will now face an extra duty at the EU border includes steel and aluminium products, agricultural goods and a combination of various other products. By putting these duties in place the EU is exercising its rights under the World Trade Organisation (WTO) rules.
The EU says it will rebalance bilateral trade with the U.S. taking as a basis the value of its steel and aluminium exports affected by the US measures. Those are worth 6.4 billion. Of this amount, the EU will rebalance on 2.8 billion worth of exports immediately.
The remaining rebalancing on trade valued at 3.6 billion will take place at a later stage – in three years' time or after a positive finding in WTO dispute settlement if that should come sooner.
The EU rebalancing measures will be effective for as long as the US measures are in place, in line with the WTO Safeguards Agreement and EU legislation.
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