India and the European Union give WTO lists of U.S. goods for potential tariff retaliation

Vastavam web: India and the European Union have given the World Trade Organization lists of the U.S. products that could incur high tariffs in retaliation for U.S. President Donald Trump’s global tariffs on steel and aluminium, WTO filings showed on Friday.The EU said Trump’s steel tariffs could cost $1.5 billion and aluminium tariffs a further $100 million, and listed rice, cranberries, bourbon, corn, peanut butter, and steel products among the U.S. goods that it might target for retaliation.

One trade official described the lists of retaliatory tariffs as “loading a gun”, making it plain to U.S. exporters that pain might be on the way.India said its tariffs would come into effect by June 21, unless and until the United States removed its tariffs.There were also objections that the tariffs would have little impact on China, widely seen to be the cause of oversupply in the market.

Trump justified the tariffs by claiming they were for U.S. national security, in a bid to protect them from any legal challenge at the WTO, causing further controversy.Rather than challenging the U.S. tariffs directly, the EU and India, like China, South Korea and Russia, told the United States that they regarded Trump’s tariffs as “safeguards” under the WTO rules, which means U.S. trading partners are entitled to compensation for loss of trade.