EU to Maintain Demand for Tariff Reduction and Elimination Against the US

Korea Economic Daily

Summary

The European Commission announced plans to strongly demand tariff reductions and eliminations in response to the US's increased steel and aluminum tariffs.
The EU stated that it is considering options to impose tariffs on US imports in response to US tariff actions.
This measure is expected to automatically take effect on July 14, and may take effect earlier depending on the situation.

"Strong Regret Over US Steel Tariff Hike to 50%"

Suspension of EU Countervailing Duties on US Steel and Aluminum Tariffs Ongoing

The European Commission plans to strongly insist on tariff reductions and eliminations against the US, even after President Donald Trump announced a doubling of import tariffs on steel and aluminum to 50%.

According to Reuters on the 2nd (local time), European Trade Commissioner Maroš Šefčovič is scheduled to meet US Trade Representative Jamieson Greer at an OECD meeting in Paris on the 4th. In addition, the Commission’s technical team plans to simultaneously continue meetings with counterparts in Washington this week.

The Commission, which oversees the European Union (EU)'s trade policy, said it is prioritizing negotiations in order to resolve the conflict.

A spokesperson for the European Commission said at a press conference that day, "We will strongly argue this week for tariff reductions and possible eliminations, both from a technical and political perspective."

The EU expressed strong regret over the Trump administration’s plan to double the steel tariff.

The EU is currently subject to a 25% tariff on steel and automobiles. In addition, 'reciprocal tariffs' are imposed on most EU goods as well. This tariff is temporarily set at 20% for the EU, but during a 90-day grace period until July, it remains at 10%.

In response to the US steel and aluminum tariffs, the EU imposed its first set of countervailing duties on US imports amounting to €21 billion (about ₩33 trillion), but immediately suspended them.

The EU is also considering countermeasures against US automobiles, and the imposition of extensive tariffs that could affect up to €95 billion (about ₩150 trillion) worth of US imports.

The Commission stated that if no mutually acceptable solution is found, this measure will automatically take effect on July 14, and may take effect earlier depending on circumstances.

By Kim Jung-ah, Guest Reporter kja@hankyung.com