The European Union (EU) looks set to continue ongoing procedures to impose retaliatory safeguard duties on American clothing exports over the US’s imposition of protective duties on steel and aluminium imports – even though Washington has now suspended the EU from these tariffs until 1 May.
This is designed to give time for the US, EU and other metal producing countries to debate reducing the current levels of metal over-supply and low prices, which have led to steel and aluminium plant closures in the US.
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Other countries temporarily suspended from the US tariffs are Argentina, Australia, Brazil, Canada, Mexico, and South Korea.
However, speaking last week at the European Parliament, EU trade Commissioner Cecilia Malmström said consultations on imposing the EU retaliatory duties would continue.
“We have made clear that should we remain subject to these tariffs we will not hesitate to act. We are preparing to bring the case to the WTO with other countries in contact. We are already pursuing our work on safeguards, because unfortunately the EU steel and aluminium industries have already been hit, because of the psychology of the market. And we are preparing the processes on rebalancing measures…that process is now ongoing with discussions with stakeholders and member states.”
The European Commission’s draft list of products that may in future attract retaliatory duties includes T-shirts, vests, shirts, jeans, shorts, trousers, footwear, slippers, fabrics and yarn. The deadline for receiving comments about whether duties should be imposed on them is today (26 March).
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By GlobalDataUS clothing and footwear on EU tariff retaliatory list
On Twitter on Friday (23 March), Malmström added that the EU reserved the right to continue with World Trade Organisation disputes cases with the US over the metal duties.
She said: “The US & EU should be tackling such issues together. We now look forward to pursuing a dialogue with the US on trade issues of common concern, such as global steel overcapacity.”
EU tariff concessions to the US could be suspended on the following apparel and footwear products:
