The surcharge is an attempt by the EU to force Congress to remove the tax treatment of US Foreign Sales Corporations (FSC), deemed in March 2000 by the World Trade Organisation (WTO) to be a prohibited export subsidy. The WTO gave the USA until November 1, 2000 to withdraw the FSC scheme.

According to EU trade commissioner, Pascal Lamy:

"Despite waiting for more than two years, the US has not brought its legislation in line with WTO rules. We are therefore left with no choice but to impose countermeasures."

According to Tony Rice, secretary general of the International Council of Marine Industry Associations (ICOMIA), the list of products to be affected is enormous. "We are still working through the hundreds of tariff codes to see if there are any that affect the marine industry in the EU, " Rice told BB .David Barrow of Barrow International, which handles international distribution for Spectra Watermakers, told BB : "I heard about this when my Greek distributor told me he had been hit with a 5% duty."

But it turned out to be a false alarm. "The Greek authorities had misread the tariff codes, " said Barrow. "Our products should not be affected at all."

Peter Edwards of ASAP Supplies told BB : "Our US imports are a six figure sum, yet this is the first I've heard of this." This is not what we wanted, he added. Edwards is not alone.

BB spoke to a few companies that had no idea this additional duty was being levied.

"This is going to put major pressure on US stainless steel manufacturers, " said Ian Cooke of C-Quip, which imports US stainless steel products. "British builders using an American made steel, aluminium or alloy product are going to have to look for new suppliers in a hurry."

The news seems slightly better from the other side of the Atlantic. Thom Dammrich, president of the USA's National Marine Manufacturer's Association (NMMA), told BB : "Mercifully, according to our people, marine products were not on the list and not affected by the most recent retaliatory tariffs."

But "retaliatory" is not the right word here, says Lamy: "The name of the game is not retaliation but compliance. The countermeasures will be lifted the day the FSC is repealed."