European Commission proposes retaliatory tariffs

BRUSSELS, Belgium (CNN) -- The European Commission has proposed extra tariffs -- some as high as 100 percent -- on a range of U.S. goods in retaliation for new U.S. steel import duties, a commission spokesman said Saturday.

The proposal was presented to the European Union Council of Ministers and will be given to the World Trade Organization by May 17. Once the WTO is notified, the revised tariffs would go into effect June 18, EC spokesman Eric Mamer said.

The 100 percent tariffs will apply to items including some types of steel products and clothing, citrus fruit, gaming tables and linens. Some categories of steel products and clothing will be subject to lesser tariffs, along with such items as nuts and fruit, cardboard boxes and footwear.

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The revenue collected from the increases is expected to offset new tariffs on imported steel imposed by the United States. Canada and Mexico are exempt because they are partners in the North American Free Trade Agreement.

The commission said additional import duties are "an appropriate re-balancing measure" after President Bush slapped tariffs of up to 30 percent on several types of imported steel in an effort to help the ailing U.S. industry. The duties took effect March 20 and will stay in place for three years.

The European Union has described the U.S. decision as political, and without legal or economic foundation.

"This measure is causing considerable injury to the Community producers concerned and it substantially disturbs the balance of concessions and obligations resulting from the WTO agreement," the commission proposal says. "The commission considers that this U.S. safeguard measure is blatantly in violation of the WTO agreement on safeguard."

In Washington, the office of the U.S. Trade Representative said the proposal violates existing WTO rules and procedures for resolving disputes.

"Unilateral, preemptive sanctions by Europe would flaunt world trade rules," said Associate U.S. Trade Representative Josette Shiner. "We meticulously followed the rules in our steel action and Europe should do the same."

The EU and the United States have the world's biggest trade relationship and are the only two major steel import markets.