EU nations slap retaliatory tariffs on US products

Members of the European Union have backed passing retaliatory measures against steel and aluminium tariffs imposed by US President Donald Trump, sources say.

Whiskey and jeans are among the American products that will be affected by the EU tariffs expected to take effect in July.

The EU tariffs are expected to take effect in July. Source: AAP

European Union countries have unanimously backed a plan to impose import duties on 2.8 billion euros worth of US products after Washington hit EU steel and aluminium with tariffs at the start of June, EU sources say.

The measures still need to be adopted by the European Commission, whose next scheduled meeting is June 20. They should be in place by late June or early July.

The European Commission has proposed setting 25 per cent duties on US goods such as orange juice, bourbon, jeans, motorcycles in response to what it is sees as illegal US action affecting 6.4 billion euros of its exports.

US President Donald Trump made steel from the European Union, Canada and Mexico subject to 25 per cent tariffs and aluminium to 10 per cent at the start of June, ending exemptions that had been in place since March.

Canada has announced it will impose retaliatory tariffs on $C16.6 billion worth of US exports from July 1. Mexico put tariffs on American products ranging from steel to pork and bourbon last week.

Some of the products chosen are designed to target states of senior Republicans who are seeking to retain control of both chambers of congress in hotly contested November elections.

The European Commission has also launched a legal challenge against the US tariffs at the World Trade Organisation.

In addition, it is assessing the need for measures to prevent a surge of imports of steel and aluminium into Europe as non-EU exporters divert product initially bound for the US.

Provisional "safeguard" measures are likely to come in July.


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