The European Union today announced its decision to extend until March 31, 2025 the suspension of its rebalancing tariffs on US products in the context of the steel and aluminum conflict between both economies, while the United States will extend the suspension of their tariffs to trade volumes in the tariff quota system set in 2022.

This extension will allow EU steel and aluminum exporters to save approximately €1.5 billion in tariffs per year. This extended suspension of tariffs provides certainty to businesses on both sides of the Atlantic, facilitating the smooth flow of trade.

The European Commission has indicated that this extension is the result of an agreement reached with the United States by which the EU extends the suspension of rebalancing tariffs in exchange for the US extending the suspension of its tariffs to historical trade volumes in the tariff quota system (TRQ) established in January 2022, in addition to providing for new exclusions from tariffs for EU exporters.

The EU rebalancing tariffs on US exports, initially implemented during Trump’s presidency, were a response to the US “Section 232” tariffs on European steel and aluminum.

“We are extending the suspension of our tariffs on US steel and aluminum. This decision provides stability for our importers and exporters as we conduct negotiations for a full and permanent elimination of the Trump-era 232 tariffs on EU exports “, the vice president of the European Commission and Commissioner for Trade, Valdis Dombrovskis, stated on his profile on X (formerly Twitter).

The United States will need to complete its own procedures to expand its tariff quota system for EU steel and aluminum exports from January 1, 2024, the European Commission has indicated.

The EU has signaled that it will continue to work constructively with the United States to preserve its legal rights and permanently eliminate US tariffs on EU exports.

He also indicated that work continues between the EU and the US to address global overcapacity and the decarbonisation of the steel and aluminum sectors in the context of discussions on a Global Agreement on Steel and Aluminum. Sustainable Aluminum (GSA).

“The mutual extension of tariff suspensions provides the time and political space necessary to reach an agreement on the outstanding GSA issues,” he added.