50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

U.S. will extend EU metals tariff exemption if needed -envoy

Published 10/25/2023, 06:23 AM
Updated 10/25/2023, 06:38 AM
© Reuters. FILE PHOTO: Steel coils are lined up at the steel plant of ThyssenKrupp in Duisburg, Germany, July 26, 2023. REUTERS/Wolfgang Rattay/File Photo
X
-
1YMH25
-
MAL
-

BRUSSELS (Reuters) - The United States will roll over its suspension of tariffs on European Union steel and aluminium if the two sides need more time to agree on measures to address overcapacity and low-carbon production, the U.S. ambassador to the EU said on Wednesday.

The United States suspended import tariffs of 25% on EU steel and 10% on EU aluminium for two years from January 2022, replacing the tariffs imposed by former President Donald Trump with a tariff rate quote (TRQ) system.

The TRQ allows up to 3.3 million metric tons of EU steel and 384,000 tons of aluminium into the United States tariff-free, reflecting past trade levels, with the tariffs applying for any further amounts.

"We have never threatened to let TRQs expire and reinstate the 25% tariff on EU steel," ambassador Mark Gitenstein told a group of reporters.

"From the beginning, we have made clear to the EU that we intend to roll over our TRQs at the beginning of the year if we needed more time to negotiate," he added.

The United States and the European Union had sought to agree measures to address excess metal production capacity in non-market economies, such as China, and to promote greener steel.

They also wanted a deal on critical minerals in time for a joint summit last week. However, they failed on both fronts.

Gitenstein said the U.S. and the EU had made substantial progress in talks on steel and aluminium in the past two years and were committed to finding a solution in the coming months.

© Reuters. FILE PHOTO: Steel coils are lined up at the steel plant of ThyssenKrupp in Duisburg, Germany, July 26, 2023. REUTERS/Wolfgang Rattay/File Photo

The transatlantic partners were also seeking an agreement under which electric vehicles using cobalt, graphite, lithium, manganese or nickel extracted or processed in the EU would qualify for U.S. tax breaks.

Gitenstein said the U.S. was committed to continuing these discussions too.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.