Europe Intends to Impose Retaliatory Tariffs
July 15, 2003
The European Union is close to slapping 100 percent tariffs on a host of U.S. products to get even for the ill-considered tariffs we imposed on steel back in March 2002.
With political craftiness, European officials have developed a list of products made in areas critical to President George Bush's re-election chances, including apples, pears, quinces, rice, T-shirts, trousers, bib-overalls, doors, blankets, stainless steel products, men's suits, drums, cans and ink-jet printers.
- The steel tariffs are supposed to remain in place until 2005, but Bush could remove them in September.
- The European tariffs would cost Americans about $2.2 billion.
- On Friday, the World Trade Organization ruled that the U.S. steel tariffs violate global trade rules -- giving the Europeans every legal right to impose their own tariffs.
Trade experts and others call the steel tariffs the worst decision of the Bush administration so far and recommend that he negate them.
Source: Editorial, "The Price of Tariffs," Wall Street Journal, July 15, 2003.
For text (WSJ subscription required) http://online.wsj.com/article/0,,SB105822812864249800,00.html
Browse more articles on Tax and Spending Issues