US Renews EU Steel, Aluminum TRQs for 2 Years
Presidential proclamations for Section 232 steel tariff rate quotas for EU countries, and for tariff rate quotas for aluminum, were published Dec. 28, with no changes to aggregate volume from the last two-year deal. The new quotas will last through the end of 2025.
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The White House said the U.S. and the EU over the last two years have made "substantial progress to identify the sources of non-market excess capacity and the actions needed to address distortions resulting from that non-market excess capacity." The two sides are "continuing their discussions on global steel and aluminum arrangements to restore market-oriented conditions in their steel and aluminum sectors and support the reduction of the greenhouse gas emissions intensity of steel and aluminum across all modes of production," the proclamation said.
The U.S. continues to allow 3.3 million metric tons of steel annually under the quota, and exclusions don't count toward that total. Exclusions granted in fiscal year 2021 and in the first quarter of calendar year 2022 will be extended for two years.
Amounts over the quota (which is administered quarterly, by product and by country) are still subject to the 25% tariff for steel, but the proclamation said the commerce secretary, in consultation with the U.S. trade representative, can recommend to the president "updates to the in-quota volumes contained in this proclamation."
Imports of aluminum above the quota pay 10%; exclusions still count against the in-quota volume. The proclamation said the in-quota volumes for aluminum also could be updated.
U.S. Trade Representative Katherine Tai issued a statement that said in part that the U.S. is "committed to defending workers, communities, and domestic industries from global non-market overcapacity and excessive carbon emissions." Extending the TRQs for another two years will allow both sides to "continue negotiations on a forward-looking, high-standard arrangement, while providing predictability and stability to steel and aluminum workers and their families on both sides of the Atlantic."