The Strategist

EU promises US counter-fees in case duties on cars are introduced

01/24/2019 - 11:52

The European Union is ready to impose import duties on American goods totaling 20 billion euros if US President Donald Trump fulfills his threats and imposes additional duties on European cars, said Jean-Luc Demarty, director general of the European Commission for Trade.

Helgi Halldórsson/Freddi via flickr
Helgi Halldórsson/Freddi via flickr
"We must be prepared to respond symmetrically and effectively to any new trade restrictions that the US may impose on us," Bloomberg quoted him as saying. "We have prepared a draft list of 20 billion euros worth of imported goods from the United States, in regard to which some actions can be taken."

This statement demonstrates risks of escalating contradictions in trade between the US and the EU, despite an agreement reached in the summer of 2018. Recall that according to the paper, both parties promised to refrain from hostile measures and strive to completely eliminate duties and other trade barriers.

US authorities are currently conducting a vehicle import verification, which will be completed in February. It is noted that the cost of European cars delivered to the United States is 10 times higher than supply of steel and aluminum, for which duties were introduced last year.