Trade Cases

US extends tariff-rate quotas with EU through 2025

December 29, 2023

The US is extending the tariff-rate quota (TRQ) agreements on steel and aluminum imports from the European Union for another two years.

In two presidential proclamations on Dec. 28, President Joe Biden announced an extension of the quotas currently in place for steel and aluminum imports from the EU through Dec. 31, 2025.

The quotas allow for up to 3.3 million metric tons of steel, 18,000 metric tons of unwrought aluminum, and 366,040 metric tons of semi-finished wrought aluminum melted and poured in the EU to be brought into the US without facing the traditional 232 tariffs. Any steel or aluminum imports above those levels will continue to be subject to tariffs of 25% and 10%, respectively.

Earlier this month, the EU announced it would suspend retaliatory tariffs on US steel and aluminum products through March 31, 2025.

Domestic industry supports the decision

Two associations representing the domestic steel industry – the Steel Manufacturers Association (SMA) and the American Iron and Steel Institute (AISI) – cheered the extension of the TRQs.

The “proclamation sets the stage for continued discussions on the proposed Global Arrangement on Sustainable Steel and Aluminum,” noted Philip Bell, president of the SMA.

“SMA supports the US government’s solution-focused approach toward an agreement that addresses both non-market excess capacity and reducing carbon emissions from around the world,” he added.

AISI also welcomed the two-year extension of the TRQs to allow for additional time for negotiations for a Global Arrangement.

“The American steel industry strongly supports the administration’s efforts to establish new mechanisms to address effectively global non-market excess capacity in steel and the higher carbon intensity of imported steel versus clean American steel,” commented AISI president and CEO Kevin Dempsey in a statement.

“In doing this, the President is making sure we continue to have vibrant steel and aluminum industries in the United States, which are especially crucial for safeguarding our national security.”

US Secretary of Commerce Gina Raimondo commented that the move shows Biden’s “commitment to defending US industry from uncertain or adverse economic conditions.”

“In doing this, the President is making sure we continue to have vibrant steel and aluminum industries in the United States, which are especially crucial for safeguarding our national security,” she added.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.