The EU went forward and applied trade sanctions against the United States today in response to a World Trade Organization ruling four years ago. The WTO found that the United States was engaging in illegal export subsidies, and Congress has not been able in the interim to change the corporate tax code to repeal the particular problem.

The EU will begin imposing a 5% tariff on a variety of U.S. products, scaling the percentage up a point each month until it reaches 17% a year from now. The tariff will affect more than $4 billion worth of American products.

This week the Senate is set to take up debate on S 1637, similar to HR 2896, a corporate tax bill from the House Ways and Means Committee, which would move the U.S. into compliance with the WTO's ruling. House Democrats, who oppose HR 2896, have started attempting to bring an alternative measure of their own (HR 1769) to the House floor.