USA could lift 25% steel tariff for EU by December
The EU and USA will next week discuss a possibility of the cancelation of Section 232 tariffs imposed by the US on steel imports for the EU. The 25% tariff on steel imports could be lifted by December this year.
As part of the trade thaw discussions between the US and EU started in May, the EU is trying to push the US to cancel steel and aluminum import tariffs imposed by the Trump administration back in 2018. This issue, along with other trade restrictions, including the Boeing/Airbus tariffs, will be discussed next Wednesday at the summit in Brussels.
“We commit to work towards lifting before 1 December 2021 all additional/punitive tariffs on both sides linked to our steel and aluminium dispute,” Reuters reported citing the seven-page draft statement.
In March, the parties reached an agreement to suspend for four months all the tariffs on direct exports of aircraft and non-aircraft products related to the WTO Airbus and Boeing disputes.
Later, in May, they initiated discussions to address global steel and aluminum excess capacity. At that time, in a move to ease tensions, the EU agreed to suspend for up to six months the planned increase of its retaliatory measures under Sections 232 case which could have come into effect on June 1.
In the US, there is a strong lobby against the removal of steel and aluminum tariffs. US steel industry representatives say that eliminating the tariffs would undermine the viability of the sector, especially considering increased global steel overcapacity during the pandemic leading to surges in steel imports into the US market.