May 17, 2021
15:05
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The European Commission has decided to suspend, for six months, the increase in customs duties on certain products imported from the United States.
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The European Union (EU) and the United States have agreed on a partial truce in their dispute over tariffs on the metals. The two powers have decided to open negotiations to resolve the problem of overcapacity of steel and aluminum in the world.
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The United States will, however, maintain its taxes of 25% on steel and 10% on aluminum.
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The European Commission announced on Monday that she suspended, for a maximum period of six months, its plan to raise taxes on a number of products, ranging from lipstick to sneakers. It also pauses the doubling of tariffs at 50% on imports of American bourbon, motorcycles and motor boats.
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In joint statement, Brussels and Washington have made it known that as allies they could promote high standards able to respond to their common concerns “and hold countries to account, like China, which support trade distortion policies “.
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Discussions between the EU and the US aim to reach solutions by the end of the year.
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What taxes are maintained?
The United States will, however, maintain their taxes of 25% on steel and 10% on aluminum, which also apply to imports from China, India, Russia, Turkey, Norway and Switzerland.
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L’administration Trump imposed the taxes on national security grounds, an argument which the EU said lacked weight. They particularly affected steelmakers like Thyssenkrupp and Voestalpine.
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In retaliation for these tariffs, the EU in turn imposed taxes on 2.8 billion euros American products, including motorcycles, the bourbon and the Orange juice. These taxes will also be maintained, but not doubled.
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