Steel – Photo Deutsche Phototek
(BRUSSELS) – The European Union is to extend until 31 March 2025 the suspension of ‘rebalancing tariffs’ on US products in the context of a steel and aluminium dispute initially implemented during the Trump Presidency.
The EU rebalancing tariffs on US exports were set up as a direct response to US ‘Section 232’ tariffs on steel and aluminium.
In return, the US is to extend the suspension of its tariffs for historical trade volumes that are reflected in the Tariff-Rate Quota (TRQ) system established in January 2022.
The US has also agreed to provide for further exclusions from the tariffs for EU exporters.
The extension is estimated to lead to EU steel and aluminium exporters saving approximately EUR 1.5 billion in tariffs annually. The US must complete its own procedures to extend its TRQ system for EU exports of steel and aluminium as of 1 January 2024.
The Commission says this prolonged suspension of tariffs gives businesses on both sides of the Atlantic certainty, facilitating the smooth flow of trade.
The EU says it will continue to engage constructively with the US to preserve its legal rights and remove US 232 tariffs on EU exports for good.
Work between the EU and the US will also continue on addressing global overcapacity and decarbonisation of steel and aluminium sectors in the context of discussions on a Global Arrangement on Sustainable Steel and Aluminium (GSA).
