On Thursday, U.S. President Joe Biden announced an extension of the suspension of tariffs on European Union steel and aluminum for two years to spur ongoing negotiations meant to address overcapacity and low-carbon production.
A flag of the European Union waves in the wind near a traffic light showing red on November 30, 2011 in Berlin, Germany. Many European leaders are warning that the growing debt crisis within the Eurozone is reaching critical proportions and that only weeks remain to take decisive action if the Euro is to survive.
The United States began suspending import tariffs of 25% on steel and 10% on aluminum produced by the European Union in January 2022.
This canceled out tariffs imposed by former President Donald Trump based on a tariff rate quota system. The TRQ system is a two-tiered system that combines import quotas and tariffs to regulate certain imported products.
In retaliation for the Trump tariffs, the EU imposed tariffs on many American-made goods, such as motorcycles, whiskey, and other products. However, those tariffs were suspended until 2025, according to Reuters.
The United States and European Union were looking to reach an agreement on measures to address excess metal production capacity in so-called non-market economies, like China, and to promote greener steel.
The TRQ allows for up to 3.3 million metric tons of EU steel and 384,000 tons of aluminum into the United States without tariffs, which coincides with past trade levels. However, tariffs still apply to higher amounts.
The new exemption applies through December 31, 2025. However, tariff rates remain the same for some non-EU countries.
