EU parliament blocks US trade deal after Trump’s tariff threat - The Guardian

In a significant development for transatlantic trade relations, the European Parliament has voted to block a mandate for trade talks with the United States. This decision, made on March 14, 2018, effectively halts any immediate prospect of reviving a comprehensive trade agreement such as the Transatlantic Trade and Investment Partnership (TTIP) or a similar limited deal. The vote, with 349 Members of the European Parliament (MEPs) voting against the resolution, 201 in favor, and 49 abstentions, was a direct response to US President Donald Trump's announced tariffs on steel and aluminum imports, which the European Union (EU) views as protectionist and a threat to global trade rules.

This move by the European Parliament underscores the growing trade friction between the EU and the US. President Trump's administration had announced tariffs of 25% on steel imports and 10% on aluminum imports. While the EU was initially granted a temporary exemption from these tariffs, this exemption was conditional on the EU making concessions in other trade areas, a condition that EU officials rejected as "negotiating with a gun to our head." The EU had, in turn, prepared a list of potential retaliatory tariffs on prominent US goods, including Harley-Davidson motorcycles, Levi's jeans, and bourbon whiskey, signaling a readiness to escalate if the US tariffs were fully imposed without an exemption for the EU.

Impact on Importers and Trade Professionals

This escalating trade tension directly affects importers, customs brokers, and trade compliance officers engaged in US-EU trade. While specific EU retaliatory tariff rates or implementation dates were not finalized in the source material, the threat of such measures creates significant uncertainty. Businesses importing steel and aluminum into the US are immediately impacted by the 25% and 10% tariffs, respectively. Furthermore, any escalation of a trade dispute could lead to new tariffs on a broader range of goods, disrupting supply chains and increasing costs for businesses on both sides of the Atlantic. The blocking of trade talks means that opportunities for tariff reductions or streamlined customs procedures through a new trade deal are now off the table for the foreseeable future.

Given this volatile environment, importers and trade compliance professionals should take proactive steps. It is crucial to closely monitor official announcements from both the US and EU regarding tariff implementations, exemptions, and any further retaliatory measures. Businesses should conduct a thorough assessment of their supply chains to identify vulnerabilities to potential tariffs and explore alternative sourcing or market strategies. Understanding the Harmonized Tariff Schedule (HTS) classifications of your goods and their corresponding duty rates is more critical than ever. Engage with your customs brokers to stay informed about the latest regulatory changes and prepare for potential shifts in import costs and compliance requirements.