European Union applying 25 percent tariffs on $3.5 billion of US imports

Vastavam web: The European Union is considering applying 25 percent tariffs on around $3.5 billion of imports from the United States if President Donald Trump carries out his plan to apply global duties to steel and aluminum, EU sources say.The European Commission has said it would respond“firmly” to proposed U.S. import duties of 25 percent on steel and 10 percent on aluminum.

A further counter-measure under consideration would specifically target the United States to“rebalance” trade between the two, EU sources say.The U.S. tariffs would be officially brought in on grounds of national security, but the European Union says U.S. military requirements represent no more than 3 percent of U.S. production and that the measures are really a form of protectionism for U.S. manufacturers.

For certain grades of steel, the United States cannot show there was any increase of imports last year, the EU sources say, meaning it would not be allowed to apply safeguard measures to them. For the EU, exports of those grades amounted to 2.8 billion euros ($3.5 billion).Assuming U.S. tariffs fully covered EU steel, the European Union would put forward 25 percent tariffs on 2.8 billion euros worth of goods from the United States.