EU and US reach agreement on steel trade

The European Union and the United States have announced that they have reached an agreement to end an ongoing trade dispute over metal products that began with the Turmp administration's Section 232 tariffs.

Recent reports confirm that trade barriers for European steel suppliers in the US will be corrected. As expected, the US administration agreed to provide European suppliers with a duty-free volumetric quota, after which a 25% duty will continue to apply. The quota volume will be determined in accordance with historical trading levels. Negotiations have been underway since early 2021.

“The US decision to restore past volumes of trade in steel and aluminum exports from the EU means we can get away from a serious irritant with the US. This gives us a respite to work on a comprehensive solution to the problem of global overcapacity. Therefore, the EU will reciprocate this. “De-escalation by suspending our own rebalancing measures. We can now focus on a more forward-looking transatlantic trade agenda and work towards a final, long-term outcome on this issue, ”said Valdis Dombrovskis, EU Trade Commissioner.

Before the introduction of the S232 tariff, Europe sold about 3.3 million tons of finished products to the United States. Callanish now understands that the tariff-free quota will be the same.

The EU and the US also added that the resolution of this trade dispute opens up new cooperation on sustainable steel and aluminum production. “The Global Compact will add a powerful new tool in our quest for resilience, climate neutrality and a level playing field. field for our steel and aluminum industries, ”said Ursula von der Leyen, President of the EU.