EU to Boost Tariffs on U.S. Goods in Metals-Trade Dispute

(Bloomberg) -- The European Union plans to impose tariffs on lighters and plastic fittings from the U.S. in retaliation over controversial American duties on imported steel and aluminum, according to EU officials.

The EU intends to apply a 20% tariff on lighters and a 7% levy on plastic fittings for furniture in response to a U.S. decision in February widening the scope of metal levies introduced in 2018 on national-security grounds, the officials said on the condition of anonymity.

The wider scope of the levies affects about 40 million euros ($43 million) of European exports to the American market, according to the EU officials.

The European duties are due to be approved on Monday and take effect on May 8. The entry-into-force delay is meant to give Washington an opportunity to reconsider its February decision, the officials said.

In a related part of the planned EU decision, U.S.-made playing cards, which are already subject to a 10% tariff under the EU’s retaliatory measures dating to mid-2018, would face an extra 4.4% European levy starting in February 2023, according to the officials.

The EU is seeking to preserve its World Trade Organization retaliation rights after the U.S. two months ago extended a 25% tariff on imported steel and a 10% duty on foreign aluminum to derivative products.

In June 2018, the EU imposed a 25% duty on 2.8 billion euros of imports of a range of U.S. products including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and bourbon whiskey as retaliation over the American metal tariffs. At the same time, the EU applied a 10% levy on U.S. playing cards.

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