President Joe Biden has extended the suspension of tariffs on European Union (EU) steel and aluminum for two more years to continue talks in addressing overcapacity and low-carbon production.
Joe Biden Suspending Import Tariffs on EU Steel
According to Reuters, Joe Biden has suspended import tariffs of 25% on EU steel and 10% on aluminum for two years, replacing the January 2022 tariffs imposed by former President Donald Trump with a tariff rate quota (TRQ) system, which allows a specified quantity of imported merchandise to be entered at a reduced rate of duty during the quota period.
On the other hand, the EU reciprocally suspended tariffs until 2025 on various US products, such as Harley Davidson motorcycles, bourbon whiskey, and power boats.
The US and the EU had been trying to make a deal about the measures to address concerns related to excess metal production capacity in non-market economies like China and promote greener steel. Discussions and negotiations were supposed to end by 2023 but had been stalled.
Presidential Proclamation of Joe Biden
In a presidential proclamation, Joe Biden noted that the US and EU, on behalf of its member countries, had made significant progress and were "continuing" their talks.
According to Reuters, the TRQ will only allow up to 3.3 million metric tons of EU steel and 384,000 tons of aluminum into the US tariff-free. The new tariff exemption applies until December 31, 2025. The president has upheld tariffs at the current level for non-EU countries.
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