The US could be given the go-ahead to impose tariffs on between US$5-7bn worth of products imported from Europe – which may include sweaters, anoraks, suits and swimwear – according to a report from Bloomberg.
Citing two European government officials, the report says Europe is expecting the World Trade Organization (WTO) to give the go-ahead on the tariff imposition, which stems from a 14-year dispute over illegal aircraft subsidies.
The officials asked not to be identified but said the WTO could issue its ruling as soon as this summer.
Originally, the US had identified a list of products that could be hit by US$11.2bn in additional duties in summer, a figure challenged by the EU.
Following this, the EU identified US$20bn worth of US imports on which it could impose additional tariffs in a tit-for-tat reaction to proposed measures outlined by Washington– but while handbags and cotton were listed, other textiles and clothing were not.
The EU’s preliminary list of US products being considered for countermeasures includes cotton, garnetted stock of cotton, and cotton waste (excluding yarn waste, thread waste and garnetted stock).
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By GlobalDataCommenting on the potentially incoming duties, trade law specialists Sandler, Travis & Rosenberg say EU exporters canuse the first sale rule to mitigate the impact and lower costs well into the future.
