The EU is introducing an increase in tariffs on US imports in response to Donald Trump’s decision to put duties up on European aluminium and steel.
How did this start?
The Trump administration announced in March that it would introduce tariffs of 25{1b1b9ce846acca1f39def03dae003274ac5660c9b015842d7bf5d85a3bcad6d8} on steel and 10{1b1b9ce846acca1f39def03dae003274ac5660c9b015842d7bf5d85a3bcad6d8} on aluminium imported into the US. Mr Trump has argued that global oversupply of steel and aluminium, driven by China, threatens American steel and aluminium producers, which are vital to the US.
The duties on steel and aluminium went ahead on 1 June and affect the EU, Canada, Mexico and other close US allies.
Why has the US imposed tariffs?
President Trump believes that if you have a trade deficit – if you import more than you export – you are losing out. The US trade deficit has increased in recent years, running at about $50bn ( £38bn) a month. The new tariffs are meant to correct this imbalance.
How has the EU responded?
In response to the US’ imposition of an increase in tariffs on steel and aluminium imports, the EU is introducing rebalancing measures (or countermeasures) on a list of products originating in the US.
These rebalancing measures, in the form of additional duty, came into effect on Friday 22 June.
There is a list of products, including steel, aluminium and some clothing and footwear items to which rebalancing measures are being applied now:
- Annex I sets out the products on which the EU will apply additional tariffs of 10{1b1b9ce846acca1f39def03dae003274ac5660c9b015842d7bf5d85a3bcad6d8} or 25{1b1b9ce846acca1f39def03dae003274ac5660c9b015842d7bf5d85a3bcad6d8} from 22 June 2018.
The EU has also taken a complaint to the WTO. Should the case still be ongoing after three years, the EU plans to impose further tariffs of on US products as follows:
- Annex II, sets out the products on which the EU will impose maximum tariffs of 10{1b1b9ce846acca1f39def03dae003274ac5660c9b015842d7bf5d85a3bcad6d8}, 25{1b1b9ce846acca1f39def03dae003274ac5660c9b015842d7bf5d85a3bcad6d8}, 35{1b1b9ce846acca1f39def03dae003274ac5660c9b015842d7bf5d85a3bcad6d8} or 50{1b1b9ce846acca1f39def03dae003274ac5660c9b015842d7bf5d85a3bcad6d8} from 1 June 2021 or after a successful WTO dispute, whichever is sooner.
The full list of products which will be subject to rebalancing measures can be found here.
Goods of origin outside of the US, that have been imported into the USA and then on to the EU should not incur the additional duty. As long as there is proof that the origin of those goods is outside the US, and that those goods have not gone through some form of material transformation in the US before export to the UK, the additional tariffs should not apply.
We would like to make our customers aware that there may be additional duty added to imported goods from the USA on shipments arriving at EU ports from 22nd June 2018.
If you you require assistance to review which tariff codes will be impacted, please don’t hesitate to get in touch with our Customs Team who will be happy to help on 01376 533006.
