The EU is planning to introduce a second wave of tariffs on US products by mid-July, EU Trade Commissioner Cecilia Malmstrom announced on June 27 as part of an effort to shield EU producers from the after-effects of US President Donald J. Trump‘s decision to slap unprecedented trade tariffs on Washington’s closest allies in the European Union, as well as on fellow North American Free Trade Agreement (NAFTA) members Canada and Mexico.
Malstrom said the EU is currently monitoring the flow of international trade to ensure that steel and aluminium products bound for the United States are not redirected to Europe, which would add to a global supply glut and adversely affect the markets of both sides of the Atlantic. She also said that as a result of Trump’s unilateral decision to treat the US’ biggest trade partners and NATO alliance members with such unprovoked hostility, the EU is examining the possibility of introducing import quotas to help EU companies cope with additional moves by the White House to tax European products.
Brussels recently launched legal proceedings against Washington, contesting the introduction of a 25% steel tariff and a 10% tariff on aluminium. The new US tariff regime against Europe came into effect on June 1. As a result, the EU has ceased all trade negotiations with Washington until the White House agrees to a moratorium on the levies until both sides can come to an agreement on how to proceed.