EU, US consent to settle aluminium and steel tariffs dispute by end of 2021

The trade disputes between the EU and US concerning tariffs on aluminium and steel will be resolved by the end of 2021 as agreed by both parties.

The deal of Boeing and Airbus tariff to suspend for five years had been reached ahead to the meeting in Brussels, while an agreement on tariffs on exports of aluminium and steel remain too far this time around.

Ursula von der Leyen, President of European Commission said following the summit: “A steel tariffs ‘working group’ will be established to make good progress in moving forward within months.”

The trade differences pre-exist to the administration of former US President Donald Trump who, in March 2018, decided to impose extra tariffs on EU exports of aluminium and steel entering the US market. The duties were set at 25% on steel and 10% on aluminium. As per the European Commission’s report, this represents €6.4 billion worth of trade.

The EU imposed extra duties on a list of US imports worth €2.8 billion, as a counterpoise. The targeted products included steel, aluminium and few other commodities.

However, the disputes in this area did not diminish the perception of renewal between the two parties.

On 15th June 2021, President Joe Biden meeting with von der Leyen and Council President Charles Michel part of the US Commander-in-Chief's European tour expressed his willingness to work together on a whole host of issues.

"The best answer is to have a circumstance where our economies grow and they grow together and they grow still based on the values set that united us in the first place," Biden said.

Both sides have also agreed to set up an EU-US High-Level Climate Action Group that is designed to strengthen the implementation of the Paris Climate accord.