Background

Tariffs on goods imported from European Union countries could be increased to as much as 100 percent under a plan currently under consideration by the Trump administration. Comments on the possible changes are due by Jan. 13.

For more information, please contact trade attorney Kristen Smith at (202) 730-4965.

Since Oct. 18 the U.S. has been imposing additional tariffs of 25 percent on more than 150 goods imported from EU countries as well as an additional 10 percent tariff on new aircraft from France, Germany, Spain, and the United Kingdom. This action followed a determination by a World Trade Organization arbitrator that the U.S. may impose up to $7.5 billion annually in countermeasures against the EU due to its failure to fully comply with a previous WTO ruling against subsidies it provided to aircraft manufacturer Airbus.

The Office of the U.S. Trade Representative is now considering the following changes to these tariffs.

- removing goods already subject to tariffs from, or maintaining them on, the tariff list

- increasing the tariff rate on goods already subject to tariffs to as high as 100 percent

- imposing additional tariffs of up to 100 percent on goods previously considered but ultimately rejected for such tariffs (these include aircraft and aircraft parts, agricultural products, handbags, tools, books and paper, textiles and apparel, carpets and rugs, clocks, bicycle parts, knives, etc.; see Annex II in the attached notice for complete list)

USTR is requesting comments on whether such actions would (a) be likely to result in the EU implementing the WTO’s recommendations or the U.S. and EU achieving a mutually satisfactory conclusion to the dispute or (b) cause disproportionate harm to U.S. interests, including small or medium-sized businesses and consumers.

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