EU discusses options for US imposition of duties on steel and aluminum

Even if the US excludes the EU from the list of applicants for additional duties on steel and aluminum, they could quantitatively restrict market entry, as EU Trade Commissioner Cecilia Malmstrom said in Strasbourg.

US President Donald Trump imposed a 25 percent duty on steel imports and a 10 percent duty on aluminum in March, but suspended them on the EU until June 1.

During a debate in the European Parliament, Malmstrom said that the duties will take effect on Friday. At the same time, she announced that on Wednesday at the OECD meeting in Paris, she will discuss the issue with US Secretary of Commerce Wilber Ross. However, she said that Trump will make the decision himself.

“In reality, if the United States decided to refrain from applying customs duties, one can expect some restrictions on exports to the EU,” the European Commissioner notes.

It remains an open question, she said, whether such restrictions will be rigid or flexible. The first would mean that after exceeding a certain volume of European sales of rolled steel and aluminum, the EU could no longer send these products to the United States. In the latter case, additional duties will be imposed after exceeding the limit for onward exports.

Malmstrom maintains its proposal to negotiate with the United States to strengthen trade and economic cooperation in specific areas, including a permanent EU exemption of customs duties on steel and aluminum.

The EU invites the US to deepen its energy cooperation, especially when it comes to liquefied natural gas (LNG). The EU 28 is also ready to talk about mutual improvement in market access for industrial products, especially cars and car parts, as well as liberalization of public procurement.