The European Union has vowed a firm response to any US breach of a major tariff pact, following Washington’s announcement of new trade investigations.
BRUSSELS: The European Commission has pledged to “respond firmly and proportionately” to any violation of last year’s EU-US tariff agreement, following the Trump administration’s launch of new trade probes.
US Trade Representative Jamieson Greer announced the investigations on Wednesday, focusing on alleged overproduction and the import of goods made with forced labour.
Commission spokesman Olof Gill stated the EU would seek clarity on how the new US Section 301 investigation interacts with the existing bilateral pact.
Gill confirmed the bloc shares US concerns about structural overcapacity in the global economy but asserted that “the sources of such overcapacity are well identified, and they do not lie in Europe”.
The future of the tariff deal was thrown into doubt after the US Supreme Court ruled in February that President Donald Trump lacked authority to impose levies under a 1977 law.
Trump subsequently announced fresh tariffs of 10% on imported goods, though the EU says it has received US reassurances about upholding the agreement.
The Commission stated it continues to abide by the accord and expects the same commitment from the United States.
“We have not received any indication that the US administration intends to deviate from those commitments,” Gill added.
EU lawmakers in the European Parliament’s trade committee could approve the removal of tariffs on US industrial goods next week, implementing Europe’s side of the deal.
