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US Steel and Aluminium Tariffs
Article

US Steel and Aluminium Tariffs

How should the EU respond?

Bruegel, 2018

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Editorial Rating

8

Qualities

  • Analytical
  • Eye Opening
  • For Experts

Recommendation

US president Donald Trump’s economic nationalism took shape in early 2018 with his announcement of tariffs on steel and aluminum imports. These trade restrictions compel the European Union to confront the costs to European industry and determine its response. According to economist Uri Dadush, a hostile trade environment will force the EU to appeal to the World Trade Organization, which itself may be under threat. getAbstract recommends this complex yet accessible analysis to industry leaders and policy experts around the world.

Take-Aways

  • Claiming national security reasons, US president Donald Trump announced the imposition of tariffs on all steel and aluminum imports.
  • The European Union could impose immediate retaliatory tariffs on certain American products to dissuade the United States from taking even more sweeping trade measures. 
  • The EU also should petition the World Trade Organization (WTO) to contest the US claim of national security as the basis for its tariffs. The United States would likely counterargue that it has the sole authority to determine its own national security needs.

About the Author

Uri Dadush is a nonresident fellow at Bruegel, a European think tank.