A tariff-rate quota (TRQ) is a two-tiered tariff system designed to regulate imports, by a combination of import quotas and tariffs. A TRQ allows imports up to a determined quantity to arrive tariff free. The tariff is then applied to any imports exceeding that quota-specified volume.
Tariff-Rate Quotas (TRQ)
On October 31, 2021, the United States agreed to replace the existing 25 percent tariff on EU steel products under Section 232 with a tariff-rate quota (TRQ). The TRQ went into effect on January 1, 2022. Under the TRQ arrangement, 3.3 million metric tons of EU steel products are allowed to enter the US each year without the application of Section 232 tariffs. Click here for more information.
Announcement of Actions on Japanese Imports of Steels Under Section 232
On February 7, 2022, the United States agreed to replace the 25 percent Section 232 tariff on steel imported from Japan with a tariff-rate quota (TRQ). The deal took effect on April 1, 2022. Under the TRQ arrangement, 1.25 million metric tons of Japanese steel are allowed enter the US each year without the application of Section 232 tariffs. Click here for more information.
Announcement of Actions on UK Imports Under Section 232
On March 22, 2022, the United States agreed to replace the existing Section 232 tariff of 25 percent on UK steel products with a tariff-rate quota (TRQ). The deal will go into effect on June 1, 2022. Under the TRQ arrangement, 0.5 million metric tons of UK steel products will enter be allowed to enter US each year without the application of Section 232 tariffs. Click here for more information.