EU Pledges 'Firm Response' to Any US Trade Deal Violations After New Investigation Announcement

Kathmandu. Following the announcement of a new trade investigation by President Donald Trump's administration, the executive head of the European Union on Thursday committed that the United States would 'firmly respond' to any violation of the major tax agreement.

US Trade Representative Jamison Greer said on Wednesday, "This investigation was focused on imports made from overproduction and forced labor."

European Commission spokesperson Olof Gill said, "We are seeking further clarification with the US. How the initiation of the Section 301 investigation will react to the EU-US agreement reached last year."

"The Commission will respond firmly and proportionally to any violation of the joint statement commitment," he added. Gill stated, "The European Union will address the United States' concerns regarding structural overcapacity in the global economy."

"However, the sources of such overcapacity are well identified and they are not in Europe," spokesperson Gill added. Questions have arisen regarding the continuation of the tax agreement between the European Union and the US after the US Supreme Court ruled last February that Trump did not have the authority to impose taxes under a 1977 law.

Under the agreement, the Trump administration imposed a new 10 percent tax on imported goods, but the EU stated it had received assurances that the US would adhere to the agreement.

The Commission expects that the EU is still complying with the agreement and that the US will show the same commitment. Gill said, "We have not received any indication that the US administration wants to deviate from its commitments."

European parliament members on the European Parliament's trade committee may give their consent next week to remove tariffs on American industrial goods as a significant step towards implementing Europe's side of the agreement.