Jan 02, 2024
Biden formally extends EU tariff exemptions through 2025

US President Joe Biden has extended the suspension of tariffs on steel and aluminium melted and poured in member countries of the European Union through 31 December 2025, Kallanish reports.

According to the President’s plan, outlined in full on the White House website, EU steel and aluminium products are subject to “a tariff rate quota (TRQ) that restricts the quantity of steel articles imported into the United States from the EU without the application of the tariff.”

The US and EU agreed to the TRQ volume of 3.3 million tonnes.

“[This volume] is consistent with the objective of reaching and maintaining a sufficient capacity utilisation rate in the domestic steel industry,” reads the President’s proclamation.

TRQ measures replace the 25% tariff imposed on EU steel as discussions discussions over the Global Arrangement on Sustainable Steel and Aluminium continue.

“During the past two years, the United States and the EU have made substantial progress to identify the sources of non-market excess capacity and the actions needed to address distortions resulting from that non-market excess capacity.  The United States and the EU are continuing their discussions on global steel and aluminium arrangements to restore market-oriented conditions in their steel and aluminium sectors and support the reduction of the greenhouse gas emissions intensity of steel and aluminium across all modes of production,” Biden states.

In an American Iron and Steel Institute (AISI) statement, president and ceo Kevin Dempsey shares approval for Biden’s proclamation.

“AISI welcomes the Biden administration’s action today to extend the TRQs on EU steel for two years to allow additional time for negotiations on the proposed Global Arrangement on Sustainable Steel and Aluminum. The American steel industry strongly supports the administration’s efforts to establish new mechanisms to address effectively global non-market excess capacity in steel and the higher carbon intensity of imported steel versus clean American steel,” Dempsey says in the AISI statement.

Earlier this month, the EU agreed to suspend its retaliatory measures on the US Section 232 tariffs through 31 March 2025.

Kristen DiLandro USA

Source: Eurometal