The European Commission wants EU states to approve duties of 100 percent on a range of US goods from June in retaliation for new US steel import duties.
The proposal, which EU officials said had been made to EU states on yesterday, said the 100 percent duties should be applied from June 18th on goods worth €377m, from citrus fruit to textiles and some stainless steel products.
The EU is angry over the US tariffs, imposed in March. With Japan and others, it has gone to the World Trade Organization (WTO) to have them overturned. Washington says the duties are needed as its industry faces a flood of imports.
The EU has sought compensation for the steel duties in the form of lower US tariffs on other goods, but since its request has not so far been met it has drawn up its sanctions plan.
Final approval for any action must come from all the member states.
"[The tariffs are] to be applied on selected US manufactured products on which the EC [European Community] is not substantially dependent for its supply, but which are likely to have a substantially equivalent impact on the US to that of the US measure on the EC," the Commission proposal added.
The sanctions of 100 percent duties would apply until there was a WTO ruling on the US steel duties. Such a ruling would not come until next year, but the EU expects the WTO to declare the US duties illegal.
If the WTO rules in favor of the EU and the United States does not drop its steel measures, the Commission proposes that a second set of trade steps be imposed with duties of eight to 30 percent on a wider range of US goods.