The European Union to impose tit-for-tat duties on goods from the US

The European Union has built some measure forms to deal with plans of the US administration in launching protective duties on imports of steel and aluminum.

The EU inclined to put 25 percent tit-for-tat- Symmetrical tax- tax into a wide range of American exports-from industrial metals to consumer product, Bloomberg reports with reference to the draft statement of the European Commission.

The blacklist will contain many US supplies to the EU that have a total value of 2.8 billion euros a year. That US supplies range from steel and aluminum to internal production that Trump authorities want to protect by restricting imports.

Besides, products under duties such as T-shirts, jeans, cosmetics, motorcycles, yachts and other consumer goods that are delivered from the United States to the European Union are estimated to be 1 billion euros per year.

The list also contains agricultural products and processed agricultural products such as rice, corn, orange juice, cranberries, as well as bourbon and tobacco products that are estimated to be 951 million euros.

Donald Trump stated last week that he will impose the tax of 25% on steel and 100% on aluminum, hurting to the economy of the European Union and putting thousands of jobs in predicament. Responding to these Donald Trump statement, EuroCommittee President Jean-Claude Juncker said that he will react decisively and proportionately.

Despite many criticisms and Republican demonstrations in Congress, Donald Trump doesn’t want to soften the package of protective measures or leaves the door open for any countries, stated by the director of the National Trade Council, Peter Navarro.

Donald Trump
Source: CNN.com


The country which affected most of US protectionism was Germany, its share in imports to the US is 3.8%, according to Vadim Merkulov, a senior analyst at the IR Fridom Finance.

The other largest suppliers are Canada (16.1%), Brazil (13%), South Korea (10.2%), Mexico (9%) and Russia (8.7%).
Responding measures from Canada and Mexico, Merkulov said that Trump threatened to withdraw from NAFTA (North American agreement on the free trade zone), but then extirpated this idea, which means the US pave the way for Mexico and Canada in an agreement reached.

The same situation incurred by South Korea. The conflict between Korea and US is unlikely to happen after Seoul has reached an agreement with the US on cooperation in energy.
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