The European Union has confirmed in a note to the World Trade Organization (WTO) that it could suspend some existing concessions related to trade with the US. This would mean effectively applying import tariffs to certain products, including steel finished goods.

In the note the EU explained that the suspension of concessions is in relation to the decision by the US to impose duties on steel without having correctly notified the WTO. As a result of the suspension, finished steel goods could be subject to a 25% import tariff when imported into the EU from the US, starting from 20 June.

The EU is awaiting a final decision from the US authorities regarding a permanent exemption for EU products from the new tariffs announced in March (see Kallanish passim). European Trade Commissioner Cecilia Malmstrom said this week that the authorities did not expect the temporary exemption to be postponed, therefore a final decision on the issue by the US is awaited next week. 

The announcement from the EU is part of a wider set of retaliation measures as part of the ongoing trade dispute. US steel producers are not set to be worried by the possible duties on EU imports as they only exported some 100,000 tonnes of steel goods to the EU last year. The EU, on the other hand, exported some 200,000 tonnes/month during the January-February period this year according to Eurofer, making the US the second most important destination for EU steel after Turkey.

“The European Union reserves the right to withdraw, modify, supplement or replace this notification, and/or make a further notification or notifications, should it deem that appropriate, including in light of any subsequent developments,” the note says. This is an indication that the announcement is to be considered provisional, and probably part of the ongoing negotiations with the US.