US May Launch New Trade Investigation Against EU
The US administration is considering the possibility of starting a new trade investigation against the EU amid a lack of a decision by President Donald Trump to impose duties on European cars, the Politico newspaper reported citing sources. President had to decide on fees by November 14th.
The publication added that Mr. Trump is unlikely to use Art. 232 of U.S. law of 1962, which implies introduction of trade restrictions in case of concern that imported products threaten national interests. In this case, according to Politico, it will be more accurate to use Art. 301 of the 1974 Trade Act, which allows the United States to unilaterally establish duties and revoke business licenses with American companies.
Recall that in 2018, the White House began to discuss introduction of increased duties on car imports from the EU. This idea was justified by national security. Cecilia Malmström, head of the EU trade department, said the EU would be forced to retaliate. In May 2019, the United States postponed the decision to impose tariffs on imported cars and spare parts for 180 days.
In July, the Minister of Economy and Energy of the Federal Republic of Germany, Peter Altmaier, said that the EU is ready to reduce to zero duties on cars that are imported from America. The EU and the US have agreed to work on the abolition of mutual duties and trade barriers. Later, European Commission President Jean-Claude Juncker ruled out the possible imposition of US duties.