On December 19, the European Union announced that it would extend the suspension of its rebalancing tariffs on US products until March 31, 2025. This decision comes in return as the United States also prolongs the suspension of its tariffs on the EU, considering the historical trade volumes reflected in the Tariff-Rate Quota (TRQ) system established in January 2022.
Initially, the rebalancing tariffs were implemented by the European Union during the Trump Presidency in response to the US “Section 232” tariffs on aluminium and steel. In 2018, the United States levied €6.4 billion in tariffs on European aluminium and steel exports. In return, the European Union introduced rebalancing tariffs of €2.8 billion on US exports. In 2022, the EU suspended these tariffs entirely until December 31, 2023, which is now being extended until 2025.
The extension of tariffs suspension on the European Union is calculated to save about €1.5 billion annually for EU aluminium and steel exporters. In addition, this prolonged suspension of tariffs will give business certainty to both sides of the Atlantic Ocean, facilitating a smooth trading opportunity.
The EU will remain closely associated with the US to preserve its legal rights and remove US 232 tariffs on EU exports for good. They will also jointly address the global overcapacity and decarbonisation of aluminium and steel sectors in the context of discussions on a Global Arrangement on Sustainable Steel and Aluminium (GSA). The mutual extension of tariff suspensions will give necessary time and policy space to find agreement on the remaining GSA issues.
Responses
