Over the weekend the U.S. Trade Representative and Customs negotiated a deal with the European Union regarding 232 steel and aluminum tariffs.
Beginning Jan. 1, 2022, the Section 232 tariffs will be replaced with tariff-rate quota.
In addition, the EU and USTR and Customs agreed to cooperate in trade remedies, customs matters and in development of additional actions; negotiate global steel and aluminum arrangements that restore market-oriented conditions while addressing carbon intensity; and agreeing to lift the EU’s retaliatory tariffs to suspend disputes before panels of the World Trade Organization.
U.S. Trade Representative Katherine Tai said these agreements will repair relationships with European countries and help ensure long-term viability of steel and aluminum industries in America.
“In addition to the EU eliminating the retaliatory tariffs against the United States, we have agreed to suspend the WTO disputes against each other related to the 232 disputes,” Tai said. “With this dispute behind us, we are in a stronger position to address global overcapacity from China with an enhanced enforcement mechanism to prevent leakage of Chinese steel and aluminum into the U.S. market.”
Tai said the matter is the first contemplated carbon-based agreement on steel and aluminum trade.
“The … agreements would create greater incentives for reducing carbon intensity across modes of production of steel and aluminum made by American and European companies,” Tai said. “We know our allies and trading partners agree, so we will encourage like-minded economies that share our collective commitment to market-based principles and addressing the carbon intensity of these industries to join our global arrangement.”
