According to the World Trade Organisation the US tariffs against EU steel are illegal, and the EU was soon to start sanctions against Florida citrus fruits, pleasure boats and a range of US-designed sporting goods, such as sports-shades and cycle jerseys. Thanks to the WTO's findings and the threat of heavy sanctions, Dubya is now set to repeal the 30 percent tariffs on EU steel.

US/EU trade war is off, reports Washington Post

The Washington Post reports that the Bush administration has decided to repeal the US tariffs on imported steel to head off a trade war against politically sensitive US exports.

The newspaper said President Bush would probably announce the decision this week.

A spokesman for the White House denied a decision had been made to repeal the tariffs.

"The matter is still under review and we’ll make announcements when there are announcements to make," the Whitehouse spokesman told Reuters.

So, what’s the US-EU steel dispute all about? There’s an excellent Q&A here:…/3259749.stm

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