The Office of the U.S. Trade Representative released a statement regarding new tariffs against the United States by certain WTO Members, including the European Union.
Read the USTR statement
The U.S. Commerce Department in January 2018 issued reports finding that imports of articles of steel and aluminum threaten to impair national security, and the president in March 2018 concurred with these finding and imposed tariffs on imports of steel and aluminum. The tariffs became effective for some WTO members on 23 March 2018 and effective for others on 1 June 2018.
The position of the USTR is that the United States has not invoked and does not seek to benefit from the right to take emergency safeguard action under Article XIX or the WTO Agreement on Safeguards, and thus, no WTO member has a right to retaliate with duties under an agreement that does not even apply. Accordingly, the duties that have been announced on U.S. exports “are completely without justification under international rules.”
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
Partner, Global Practice Leader
Partner, National Practice Leader
John L. McLoughlin
Principal, East Coast Leader
Luis (Lou) Abad
© 2020 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.