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‘US and EU prevent extra high import tax on American jeans’ | Financial

In retaliation for steel tariffs introduced by Donald Trump in 2018, the EU charges an additional 25 percent tax on a selection of American products entering the country bloc. Those penalties would double on June 1, threatening to make imported jeans from Levi’s and Harley-Davidsons 50 percent more expensive.

Steel and aluminum

The US and the EU have now pledged to discuss overcapacity in the steel market. In the meantime, Brussels will refrain from increasing import duties, Bloomberg writes. American and European negotiators would not be so far that an abolition of import duties is in sight.

The trade dispute arose when Trump introduced import tariffs of 25 percent on steel and 10 percent on aluminum from virtually all countries in the world in the spring of 2018. He motivated this step with concerns about national security. The EU retaliated with similar measures.

Joe Biden’s trade envoy, Katherine Tai, said before a Senate committee just this week that Trump’s import tariffs were needed. “They have shaken our economy, but were necessary to address the global overcapacity caused mainly, but not exclusively, by China.”

Extra pain

The American Chamber of Commerce pointed out on Friday the negative consequences of the trade dispute. It would only hurt American companies and their employees even more. For example, exports of American spirits to the EU have fallen by 40 percent since the levies were introduced. The problem of Chinese exporters dumping cheap steel on the American market has already been solved with measures other than generic import duties, according to the influential lobby group.

‘US and EU prevent extra high import tax on American jeans’ | Financial
Source link ‘US and EU prevent extra high import tax on American jeans’ | Financial

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