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USTR challenges five WTO members imposing tariffs on U.S. products

USTR challenges five WTO members imposing tariffs

The Office of the U.S. Trade Representative today announced the United States has launched separate disputes at the World Trade Organization (WTO) against China, the European Union, Canada, Mexico, and Turkey, challenging the tariffs each WTO member imposed in response to U.S. tariff actions on imports of steel and aluminum.

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The USTR release states:

The U.S. steel and aluminum duties imposed by President Trump earlier this year are justified under international agreements the United States and its trading partners have approved. However, retaliatory duties on U.S. exports imposed by China, the EU, Canada, Mexico and Turkey are completely without justification under international rules.

The U.S. tariffs on steel and aluminum were effective for some WTO members in March 2018, and for others beginning 1 June 2018. In response, the following WTO members have retaliated against products originating in the United States. 

  • China: Retaliatory tariffs, effective April 2, 2018, impose 15% to 25% additional duties on $3.0 billion in U.S. imports (based on 2017 trade values). 
  • European Union: The EU’s retaliatory tariffs are effective in two tiers.  The first tier, effective 22 June 2018, imposes 10% to 25% additional duties on $3.2 billion in U.S. imports (based on 2017 trade values).  Tier 2 is not effective until 1 June 2021.  In tier 2, the EU will be imposing 10% TO 50% additional duties on $4.2 billion in U.S. imports (based on 2017 trade values).
  • Turkey: Retaliatory tariffs, effective 21 June 2018, impose 4% to 70% additional duties on $1.8 billion in U.S. imports (based on 2017 trade values).  
  • Canada: Retaliatory tariffs, effective 1 July 2018, impose 10% to 25% duties on $12.7 billion in U.S. imports (based on 2017 trade values).
  • Mexico: Retaliatory tariffs were effective in two tranches, on 5 June 2018 and on 5 July 2018. In total, Mexico is imposing 7% to 25% duties on $3.6 billion in U.S. imports (based on 2017 trade values). 

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: 612-305-553

3E: jlibby@kpmg.com

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