European Union Set to Impose Tariffs on U.S. Trucks

The European Union is moving ahead with its plans to impose temporary safeguard duties on imports into the EU of U.S.-made trucks as a reaction to the levying of American import duties on aluminum and steel imports.

The EU executive branch, the European Commission, has published a regulation that will authorize these duties by June 16, after they have been approved by the EU trade barriers committee.

These particular tariffs will, however, stay in reserve until (and if) the World Trade Organization declares the Trump Admin.’s metal duties to be in breach of American global trade agreement commitments.

The U.S. claims the tariffs are justified to build up its domestic steel and aluminum sector so it can supply its military – an argument dismissed as spurious by the EU, which stressed its member states are U.S. military allies, branding the tariffs protectionist safeguard duties in disguise.

If the WTO rules in favor of the EU – which has initiated a disputes procedure at the global trade body – the EU would impose 10% duties on U.S.-made trucks weighing under five tons. The EU would impose 10% duties on U.S.-made tempered and laminated safety glass for use in motor vehicles, plus rear-view mirrors.

The EU also would impose 25% duties on motorcycles – which probably will come into force June 20 regardless of the outcome of its WTO case. The same would apply to auto-industry inputs such as a wide range of U.S.-made aluminum and steel products: bars, rods, angles, plate, wire and more, which also are likely to attract 25% EU duties this month.