EU Retaliates With New Tariffs on US Lighters, Plastic Furniture Fittings
The European Union will increase its safeguard measures on U.S. goods in retaliation for new Section 232 tariffs on steel and aluminum “derivatives” imposed in February, the EU said in a notice published in the April 7 Official Journal. Effective May 8, an additional 20% tariff will be imposed on U.S. lighters (other than pocket lighters) under EU Combined Nomenclature subheading 9613.80.00, and an additional 7% tariff on plastic fittings for furniture and coachwork of CN subheading 3926.30.00, the EU said.
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The notice says that an additional 4.4% tariff on U.S. playing cards under CN subheading 9504.40.00 will be imposed at a future date. That date is either Feb. 8, 2023, or five days after the World Trade Organization rules that the U.S. Section 232 tariffs are illegal, whichever is earlier. If the tariffs take effect on an earlier date per a WTO ruling, the EU will publish another notice in the Official Journal announcing the new effective date, the notice said.
“Notwithstanding the United States' characterisation of these measures as security measures, they are in essence safeguard measures,” said the EU in the notice. “They consist of remedial action that disturbs the balance of concessions and obligations” under the WTO, “and restricts imports for the purpose of protecting domestic industry against foreign competition, for the sake of that industry's commercial prosperity.” WTO rules provide for retaliation for countries affected by safeguards if no solution is reached in consultations. Consultations between the U.S. and the EU “did not result in any satisfactory solution,” the notice said.