Europe unites against Bush tariffs

European representatives are vowing to fight US plans to impose tariffs on steel imports, with some claiming it could prove 'catastrophic' for the industry in Europe.

Britain's Eryl McNally, socialist trade and industry spokeswoman in the European Parliament said: "America is flexing its muscles. We must send a clear signal that Europe will not be bullied by a Bush administration using trade protection to appease domestic political concerns."

She added: "Europe must not cave in on one of the first tests of its mettle against the Bush administration's demands on trade."

President Bush said the tariffs of between 8% and 30% were designed as "temporary safeguards" to protect US jobs. However, governments worldwide believe the move flies in the face of free trade and globalisation.

The European Commission signalled it will challenge the US tariffs as illegal in the World Trade Organisation.

Mrs McNally added: "America must not be allowed to bend rules to meet its own domestic political concerns. For a British steel industry already on its knees, this irresponsible action will be catastrophic."

The EU exports about 3.7 million tonnes of steel to America annually.