The European Commission today announced the adoption of a regulation as the EU's rebalancing measures in response to the U.S. tariffs on steel and aluminum. The measures will immediately target a list of products having a value of €2.8 billion and have an effective date of 22 June 2018.
The list of U.S. imports [PDF 391 KB] that will be subject to an extra customs duty at the EU border includes steel and aluminum products, agricultural goods, and a combination of various other products.
As noted in today’s EC release, today's announcement follows the notification of the full list to the World Trade Organization and endorsement by the EU College of Commissioners on 6 June 2018, following the U.S. application of the full tariffs on EU steel and aluminum products. EU Member States have expressed their unanimous support for this approach.
The EU will rebalance bilateral trade with the United States, taking as a basis the value of its steel and aluminum exports affected by the U.S. measures—reflecting a value of €6.4 billion, of which the EU will rebalance on €2.8 billion worth of exports immediately. The remaining rebalancing on trade valued at €3.6 billion will take place at a later stage, in three years' time or after a positive finding in WTO dispute settlement if sooner. The EU rebalancing measures will be effective for as long as the U.S. measures are in place, in line with the WTO Safeguards Agreement and EU law. Implementing regulation are to be published tomorrow and be effective Friday, 22 June 2018, and will list the products and level of duties to be applied, both now and in the future, if necessary.
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
Doug Zuvich Partner, Global Practice Leader T: 312-665-1022 E: dzuvich@kpmg.com
Andy Siciliano Partner, National Practice Leader T: 631-425-6057 E: asiciliano@kpmg.com
Irina Vaysfeld Principal T: 212-872-2973 E: ivaysfeld@kpmg.com
Robert Waldrop Principal T: 212-954-8117 E: rwaldrop@kpmg.com
Christopher Young Principal T: 312-665-3229 E: christopheryoung@kpmg.com
George Zaharatos Principal T: 404-222-3292 E: gzaharatos@kpmg.com |
John L. McLoughlin Principal, East Coast Leader T: 267-256-2614 E: jlmcloughlin@kpmg.com
Luis (Lou) Abad Principal, WNT T: 212-954-3094 E: labad@kpmg.com
Amie Ahanchian Managing Director T: 202-533-3247 E: aahanchian@kpmg.com
Gisele Belotto Managing Director T: 305-913-2779 E: gbelotto@kpmg.com
Andy Doornaert Managing Director T: 313-230-3080 E: adoornaert@kpmg.com
Jessica Libby Managing Director T: 612-305-5533 E: jlibby@kpmg.com |
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.