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EU says it will take US to WTO, plans retaliation

The European Union on May 31 said it would take the U.S. to the World Trade Organization to settle a row over steel and aluminum tariffs and vowed to retaliate with additional duties on American imports.

"We will defend the Union's interests, in full compliance with international trade law," European Commission President Jean-Claude Juncker was quoted as saying in a statement announcing that the WTO will launch proceedings against the U.S. on June 1.

The EU response followed the Trump administration's decision May 31 to impose tariffs of 25% on steel imports and 10% on aluminum imports from Canada, Mexico and the EU. The duties will take effect at midnight May 31. The U.S. measures affect EU exports worth €6.4 billion in 2017.

In a statement, Mexico's Economy Secretariat said it would impose measures to an equivalent amount on products including flat steel, lamps, pork chops, cured meats, apples, grapes, blueberries and cheese.

Canadian Prime Minister Justin Trudeau and Minister of Foreign Affairs Chrystia Freeland were due to hold a press conference at 1:30 p.m. Eastern Time.

"This is protectionism, pure and simple," Juncker was quoted as saying.

Overcapacity remained at the heart of the problem, and the EU was not the source of the problem though equally hurt by it, Juncker said. "By targeting those who are not responsible for overcapacities, the U.S. is playing into the hands of those who are responsible for the problem."

The EU said it would use the possibility under WTO rules to "rebalance the situation" by targeting a list of U.S. products with additional duties. The WTO was notified May 18 of the "potential rebalancing," which could be triggered 30 days later.