For the time being, the EU can continue to export steel and aluminum to the USA duty-free. President Biden extended a corresponding regulation until the end of 2025. The USA and the EU have been negotiating for some time to find a permanent solution.
The European steel and aluminum industry will initially be allowed to export its products to the USA duty-free at fixed quotas for another two years. US President Joe Biden made this possible through an executive order. In doing so, he extended an existing regulation until December 31, 2025.
According to US information, this is intended to gain time to end the recently stalled negotiations with the EU about a follow-up regulation. The EU and USA want to promote more environmentally friendly production of steel and defend themselves against competition from China. Actually, a solution should be found this year. But the talks stalled in the fall. Biden now spoke of “substantial progress” in the negotiations.
Tariffs were introduced under Trump
The trade dispute goes back to former President Donald Trump. The Republican introduced tariffs on steel and aluminum five years ago and justified this with “national security interests.” It’s about protecting our own industry and American workers, Trump said at the time. The EU countered with tariffs on, among other things, Harley Davidson motorcycles and US whiskey.
Trump’s successor, the Democrat Biden, promised when he took office to repair the relationship with the US allies that Trump had damaged. The USA and EU agreed on the existing interim solution, according to which the Europeans can sell up to 3.3 million tons of steel and 384,000 tons of aluminum to the USA without being subject to tariffs. For anything beyond that, 25 percent must be paid on steel imports and ten percent on aluminum imports.
With information from Katrin Brand, ARD Washington
Katrin Brand, ARD Washingtons, tagesschau, December 28th, 2023 11:35 p.m