Biden extends EU steel, aluminum tariff exemption 2 years

President Joe Biden on Thursday extended a suspension of European Union tariffs on steel and aluminum for two years to continue negotiations on measures to address excess capacity and low-carbon production.

The United States suspended import tariffs of 25% on EU steel and 10% on EU aluminum for two years starting in January 2022, replacing the tariffs imposed by former President Donald Trump with the Tariff Quota (TRQ) system.

EU tariffs imposed in retaliation targeted a wide range of U.S. products, from Harley-Davidson motorcycles to bourbon whiskey and power boats.

These too have been postponed until 2025, following elections on both sides of the Atlantic.

The United States and the European Union were seeking agreed measures to address excess metal production capacity in non-market economies such as China and promote greener steel.

The debate was supposed to be resolved by 2023, but has stalled.

The United States has suspended import duties of 25% on EU steel and 10% on EU aluminum for two years from January 2022. Pool/ABACA/Shutterstock

In his presidential proclamation, Biden said the two countries have made “substantial progress” and “continuing discussions.”

Reflecting historical trade levels, the TRQ allows up to 3.3 million tonnes of EU steel and 384,000 tonnes of aluminum to be imported into the US duty-free, with tariffs applicable on quantities above that.

The new exemption applies until December 31, 2025.

Biden has kept tariffs on non-EU countries at current levels.



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