The European Union announced an agreement with the United States extending the suspension of special customs duties on steel and aluminum products until March 2025.

This step aims to avoid further escalation in a long-term trade dispute with the United States that arose under the administration of former US President Donald Trump.

The European Commission said in a press statement yesterday that suspending US customs duties will enable steel and aluminum exporters in the European Union to save about 1.5 billion euros ($1.64 billion) annually.

In contrast, EU tariffs on American products such as Harley Davidson motorcycles and jeans will continue to be suspended.

These tariffs were imposed by the bloc for the first time in response to additional duties on steel and aluminum imports imposed by Trump in 2018. A permanent solution to the trade dispute was supposed to be found by the end of this year.

However, no agreement was reached at the US-EU summit in Washington last October, which led to the extension of the suspension.