Trade Update • January 1, 2024 T
he European Union has extended until March 31, 2025 the suspension of its rebalancing tariffs on US products in the context of the steel and aluminium dispute. Initially implemented during the Trump Presidency, the EU rebalancing tariffs on US exports were a response to the US “Section 232” tariffs on steel and aluminium.
This extension is the result of an agreement reached with the US. The EU prolongs the suspension of rebalancing tariffs in return for the US extending the suspension of its tariffs for historical trade volumes that are reflected in the Tariff-Rate Quota (TRQ) system established in January 2022. In addition, the US agreed to provide for further exclusions from the tariffs for EU exporters.
United States Trade Representative Katherine Tai today released the following statement on the European Union announcing its extension of the suspension on tariffs on U.S. goods:
“For the past two years, the United States and European Union have been engaged in critically important negotiations. Our goal is to forge a forward-looking arrangement that will allow us to join forces economically to incentivize fair and clean production and trade in the steel and aluminum sectors.
“These are technically complex negotiations and the United States remains committed to our partnership with the EU and to staying at the table to continue the progress we have made so far.
“I am glad the EU has announced that it is taking steps to join us in extending the time for these negotiations and will follow our recommendation by continuing to suspend its tariffs on U.S. products.
“Since we began our negotiations in 2021, two new wars have started and global economic disruptions continue. The spirit of cooperation and partnership forged between President Biden and President von der Leyen is embodied in our efforts to address our shared global challenges. These initiatives include our work to create new trade paradigms that will drive a race to the top and promote resilience, sustainability, and opportunity for workers and industries on both sides of the Atlantic.”
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