US Trade Probes Spark EU Ire
Transatlantic trade tensions are escalating as the US launches trade investigations into the EU, China, and India. Brussels dismisses the probes as "unjustified" and vows to respond to any breach of the EU-US trade deal. With European lawmakers set to vote on the trade accord in two weeks, analysts warn that "time is running out to avert a new trade war."
The US Trade Representative is investigating potential unfair trade practices related to "structural excess capacity and production" in the EU, China, and India, among others. This probe, initiated under Section 301 of the Trade Act of 1974, could result in new tariffs as early as this summer. USTR Jamieson Greer stated the investigation will focus on economies with evidence of "structural excess capacity and production in various manufacturing sectors". The EU has rebuffed the US allegations, with a European Commission spokesperson stating that the sources of overcapacity "do not lie in Europe". Brussels has vowed to respond "firmly and proportionally" if the US imposes tariffs that breach the existing EU-US trade deal. EU lawmakers are seeking clarity from Washington on how the probe will interact with the trade agreement reached last July. The European Parliament is scheduled to vote on the EU-US trade deal in two weeks, but the new US probe has created further uncertainty. EU lawmakers will meet on March 17 to decide whether to restart the ratification process. Concerns remain that the US may rebuild a tariff architecture that alters the balance of the agreement.
