U.S. clothing, cosmetics on possible EU retaliation list

By Kitco News / March 06, 2018 / www.kitco.com / Article Link

BRUSSELS (Reuters) - Clothing, orange juice, cosmetics and other products from the United States may be subject to European Union duties if U.S. President Donald Trump carries out his threat to impose global import duties on steel and aluminum.

The European Commission has said it would respond “firmly” to proposed U.S. import duties of 25 percent on steel and 10 percent on aluminum. It has drawn up a list of 2.8 billion euros ($3.46 billion) worth of U.S. products on which it could apply a 25 percent tariff.

Commission President Jean-Claude Juncker said on Friday those products included Harley Davidson (HOG.N) motorcycles, bourbon and Levi jeans.

The Commission briefed representatives from the EU’s 28 countries on Monday, showing them the list, which is split fairly equally in value between steel products, consumer products and food and drink.

EU diplomats said on Tuesday that the second category, worth just over 1 billion euros, included shirts, jeans, textiles, footwear, cosmetics, motorcycles and recreational boats.

The food and drink category, worth just under 1 billion euros, included bourbon whiskey, corn and orange juice.

The products can generally be sourced elsewhere. Some come from states important to the U.S. Republican Party. Harley Davidson, for example, is based in Wisconsin, the home state of House of Representatives Speaker Paul Ryan. Bourbon comes mostly from Kentucky, home to Senate Majority Leader Mitch McConnell.

The list of counter-measures remains subject to the U.S. administration’s actually imposing tariffs on EU steel and aluminum. Trump said the plan would be formally announced this week.

Depending on the details of that plan, the European Commission is expected to hold a short public consultation before presenting to EU member states the proposed counter-measures.

Under World Trade Organization rules, counter-measures would have to be brought in within three months of a U.S. decision on tariffs.

Reporting by Philip Blenkinsop, editing by Larry King

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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