European Imports Hit with 100% Tariff

December 1998

On December 21, 1998, the United States rejected a call by the European Union for a new World Trade Organization review, and announced a list of imports from the EU to be subject to a punitive 100 percent duty. The duties will be imposed in retaliation to the EU's refusal to change its banana import policy, which favors the importation of bananas grown in former European colonies.

While the list of items subject to these duties may change, included are: bath preparations; bed linens; candles; chandeliers and other lighting fixtures; electric coffee and tea makers; felt paper and paperboard; printed greeting cards; handbags covered in plastic sheeting or covered in reinforced or laminated plastic; lead acid storage batteries (other than car batteries); lithographs; noncorrugated paper boxes and cases; pecorino cheese not suitable for grating; nonadhesive polymer plates, sheets, film foil and strip; items of 100 percent cashmere; and, sweet biscuits. The U.S. is contemplating adding certain pork and olive products to this list.

Unless the EU modifies its banana policy, the duties are scheduled to become effective on February 1, 1999. This date could be delayed until March 3rd if the EU requests arbitration to review the amount of the duties. These duties will not affect imports from the Netherlands or Denmark, as those nations sided with the U.S. in the banana dispute.

If you have any questions on how these duties could impact your company, please give a call to your BR&C contact.