European Union says it will retaliate US product taxation

On Thursday, the European Union said it would retaliate against the US decision to impose tariffs on a number of the bloc’s exports, including cheese and wine.

“If the US imposes countermeasures, they will force the EU into a situation where we will have to do the same,” European Commission spokesman Daniel Rosario said today, echoing the gloomy outlook expressed by several EU governments. “This is a move that will primarily affect US consumers and companies and will make more complicated efforts towards a negotiated settlement,” he added.

That’s because, on Wednesday, October 2, the World Trade Organization (WTO) authorized the United States to proceed with retaliatory measures. The new rates should cover up to US$7.5bn of EU imports.

The US government argues that illegal EU subsidies for French-based aircraft maker Airbus are preventing fair competition with Boeing in the United States. The WTO supported the argument in May 2018.

WTO rules provide that complainants may take countermeasures if the other side does not take corrective action.

Washington says it will impose up to 25% extra tariffs on agricultural products and 10% for EU aircraft. The measures will take effect on October 18.

The United States is also considering imposing additional fees for cars from European countries and other locations.

Source: Comex do Brasil and Estadão Conteúdo

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