The European Union and the US have reached an agreement to end the ongoing trade dispute involving steel products, initiated with the imposi-tion by the Trump administration of Section 232 tariffs.

The latest announcements confirm that steel trade barriers for European suppliers to sell into the US will be adjusted. As expected, the US admin-istration has agreed to give to European suppliers a tariff-free volume quota beyond which the 25% duty will continue to be implemented. The quota volume is to be determined according to historical trading levels. Negotiations have been ongoing since earlier in 2021.

"The US decision to restore past trading volumes of EU steel and alu-minium exports means we can move on from a major irritant with the US. It gives us breathing space to work on a comprehensive solution to tackle global overcapacity. The EU will therefore reciprocate this de-escalation by suspending our own rebalancing measures. We can now focus on a more forward-looking transatlantic trade agenda, while also working on a final, lasting outcome to this issue," Valdis Dombrovskis, EU trade commissioner, says.

Before the S232 tariff was imposed, Europe sold to the US some 3.3 mil-lion tonnes of finished products. Now the tariff-free quota will be of the same magnitude.

The EU and the US also add that the resolution of this trade dispute opens a new collaboration on sustainable steel and aluminium produc-tion. “The global arrangement will add a powerful new tool in our quest for sustainability, achieving climate neutrality, and ensuring a level playing field for our steel and aluminium industries," Ursula von der Leyen, EC president, says.

The European Steel Association (EUROFER) welcomes the statement of the EU and the US to tackle jointly shared challenges in the steel and aluminium sectors, including negotiating an arrangement on carbon intensity and global overcapacity, and replacing the current 25% tariff measure of the US Section 232 on EU steel imports by a tariff-rate quota regime (TRQ) based on historical volumes.