EU trade chief flies to US to seek exemption, corn threat remains

EU Trade Commissioner Cecilia Malmstrom has flown to Washington to petition the US for an exemption from proposed steel and aluminium tariffs, although retaliatory taxes on imports including corn remain on the table, sources say.

Malmstrom, who has previously said the EU "must be" excluded from President Trump's proposed 25% tax on steel and 10% on aluminium imports, will meet US Secretary of Commerce Wilbur Ross to discuss the new tariffs.

“Dialogue is always a prime option for the EU. But of course, the EU also continues its preparations to defend ourselves in case measures apply to the EU,” European Commission sources told Agricensus.

“No one has any interest in escalating this situation, but if we have to do that, that is what we will do,” the source said.

On Friday the European Commission formally published a 10-page document listing proposed products, including corn, which could become subject to a 25% counter-tariff should the US go ahead with its plan.

While there is yet to be a decision on the matter, trade sources told Agricensus the situation presents a headache for the feed industry, with Spanish buyers most likely to be affected.

Other major buyers of US corn include the Netherlands, Portugal, Ireland and the UK, with the EU importing 872,984 mt worth €155.5 million in 2017, according to EU figures.

A consultation with the potentially-affected industries is now underway, with a deadline of March 26.

European cereal trade body COCERAL declined to comment on how any tariff would impact its members.