Pressure Builds on U.S. Over Steel Tariffs

The European Union launched its formal case against the United States over President Bush’s steel tariffs and signaled it had its eye on compensation or retaliation by blocking U.S. goods.

The EU accused the U.S. of violating World Trade Organization agreements and basic rules by imposing the tariffs, which take effect March 20. The EU action followed similar moves by Japan, Australia and New Zealand.

Under the WTO’s dispute settlement procedure, the EU would have to wait for the outcome of hearings and rulings that would take at least 18 months.

But through separate consultations under the WTO’s Safeguards Agreement, some trade analysts and lawyers say, it could slap sanctions on U.S. imports by the middle of the year.