Will tariffs resume on EU steel & aluminum?
By USA In Insight On 19th October 2023
UPDATED October 25, 2023
In a statement released by the White House, the U.S. and EU plan to continue working toward a Global Arrangement on Sustainable Steel and Aluminum during the next two months ahead of the December 31 expiration of the original agreement.
An official close to the matter has indicated the Tariff Rate Quotas are expected to be rolled into 2024 if negotiations continue into the new year.
NNR is monitoring the situation closely.
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The two-year agreement between the European Union (EU) and the U.S. on steel and aluminum tariffs may come to an end soon if negotiations aren’t concluded by October 31.
On October 20, U.S. President Joseph Biden will meet with President Charles Michel of the European Council and President Ursula von der Leyen of the European Commission, where it’s anticipated they will discuss steel and aluminum tariffs. According to the original White House proclamation, the goal is for the parties “to conclude negotiations on global steel and aluminum arrangements to restore market-oriented conditions and support the reduction of the carbon intensity of steel and aluminum across modes of production.” Otherwise, an additional duty rate of 25% on steel and 10% on aluminum will apply to products originating from EU countries.
Today, a tariff rate quota (TRQ) on steel and aluminum from EU countries allows a specified quantity of certain products into the U.S. free of additional ‘Section 232’ duties. When the tariff-rate quota limit is reached, goods may still enter the U.S. at a higher duty rate.
In the case an agreement is not reached by the end of October, the expectation is the TRQ will cease to exist on January 1, 2024. Importers should plan accordingly, anticipating a flood of goods for specific ‘fast-fill’ quota categories to reap the benefits of reduced tariffs before the December 31 deadline. Importers may check U.S. Customs Commodity Status Reports to check the quota status before importation.
EU Countries Covered
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia (Czech Republic), Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
European Union Tariff Rate Quota Periodic Limits | U.S. Customs and Border Protection (cbp.gov)
A Proclamation on Adjusting Imports of Steel into the United States | The White House