U.S. President Joe Biden on Thursday extended the suspension of European Union steel and aluminum tariffs for two years to continue negotiations on measures to address excess capacity and low-carbon production.
The United States suspended import tariffs of 25% on EU steel and 10% on EU aluminum for two years starting January 2022, replacing tariffs imposed by former President Donald Trump with a system of tariff quotas (TRQ).
EU tariffs imposed in response , covered a range of American products, from Harley Davidson motorcycles to bourbon and motor boats. They have also been delayed until 2025, following elections on both sides of the Atlantic.
The United States and the European Union had sought agreement on measures to address excess metals production capacity in non-market economies such as China, and promoting greener steel. Discussions were supposed to conclude by 2023 but have stalled.
In a presidential statement, Biden said both sides had made “substantial progress” and were “continuing discussions.”
TRQ allows duty-free import up to 3.3 million metric tons of EU steel and 384,000 tons of aluminum into the United States, reflecting past trade levels, with tariffs applied to any further volumes. The new exemption will remain in effect until December 31, 2025.
Biden kept tariffs at current levels for non-EU countries.
