Trade Cases
US extends tariff-rate quotas with EU through 2025
Written by Laura Miller
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
Read more from Laura MillerLatest in Trade Cases
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Commerce increases import duties on Korean galv, plate
The Commerce Department is raising the import duties on imports of corrosion-resistant sheet and cut-to-length plate from Korea.
Leibowitz on trade: Why is protectionism so popular?
The world has had a few shocks recently. The CEO of a major health insurance company was gunned down in Manhattan. The 50-year Assad dynasty in Syria was pushed out less than two weeks after rebels started an offensive. And President-elect Trump is promising tariffs on everything a month before he takes office. But one shock has been taking place for a lot longer than the last few weeks. The 70-year consensus on trade hasn’t just been challenged. It’s been repudiated.
Ternium chief say Mexico tariffs ‘irrational’
Vedoya said the proposed tariffs are "an irrational measure that would harm both their own industry and ours."
Price on Trade: Trump tariffs are no negotiating tool – and could come at lightning speed
We focused on trade actions the second Trump administration might take in a prior column. Since then, we have learned more about the individuals who will be leading these efforts. Recent nominations reinforce the president-elect’s statements that tariffs will feature prominently in the second administration and that trade actions will be unveiled at lightning speed.