Trade war looms

last updated 8 January 2015

Brussels

The World Trade Organization ruled this week that the huge steel import duties the U.S. imposed last year were illegal. If the ruling isn’t overturned on appeal, the European Union could slap retaliatory sanctions totaling more than $2 billion on imports from the United States. The Bush administration imposed the nearly 30 percent tariffs on most types of steel from Europe, Asia, and South America in March 2002, citing a need to protect U.S. steel makers. The E.U. has already drawn up a list of U.S. products—including textiles and fruit and vegetables—on which it wants to impose sanctions, but it must wait until the appeal is heard later this year.