U.S., EU discussing new tariffs focused on Chinese steel
- September 8, 2023
- Posted by: Quatro Strategies
- Categories: Europe, Mining & Metals, Sanctions & Regulation, United States
The United States and the European Union are reportedly in discussions to establish new tariffs aimed at addressing excess steel production, with a primary focus on imports from China that are believed to benefit from non-market practices.
While the scope of these measures, including other countries that may be targeted and the specific tariff rates, is still being deliberated, the aim is to curb the impact of steel overcapacity on global markets.
This initiative is part of the broader Global Arrangement on Sustainable Steel and Aluminum, a negotiation that has been ongoing between the EU and the Biden administration since 2021. The goal is to reach a comprehensive agreement within this framework by October 2023.
The 2018 imposition of tariffs by then-US President Donald Trump, which included a 25% tariff on steel imports and a 10% tariff on aluminum imports, was intended to protect domestic producers and led to a significant trade dispute with the EU.
However, in 2021, both parties decided to resolve this dispute and instead focus on the global arrangement. This arrangement aimed to allow limited volumes of EU-produced metals to enter the United States without tariffs while retaining the disputed tariffs on other imports.
The ongoing discussions aim to devise a more comprehensive approach to address steel overcapacity, particularly concerning imports from China. The precise details of these new tariffs and their potential impact on the global steel trade will depend on the outcomes of these negotiations.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
India signals long-term pivot to U.S. with unprecedented trade offer
India is offering a rare and powerful incentive to clinch a trade deal with the United States — a special clause that would ensure Washington always gets the most favorable terms India agrees to with any other country in the future.
The provision, known as a forward most-favoured-nation (MFN) clause, is designed to “future-proof” the deal. If granted, it would automatically extend to the U.S. any better tariff terms India might offer to another trade partner down the line. Such clauses are highly unusual in India’s trade agreements, highlighting the strategic importance New Delhi is placing on securing a comprehensive deal with the Trump administration.
WTO conference marked by turbulent talks and fading hopes for trade breakthroughs
Following a tumultuous and contentious meeting of its top officials, the World Trade Organization (WTO) faced renewed criticism regarding its efficacy in dismantling trade barriers, ensuring stability through global agreements, and enforcing rules. The 13th ministerial conference held in Abu Dhabi…
EU to soften methane rules as energy security fears return
The European Commission is preparing to soften how the EU’s methane-import law is enforced, not by scrapping the regulation, but by making clear that compliance will be handled in a way that does not threaten energy security.
The planned guidance would give companies more flexibility on penalties and on how they trace imported fossil fuels, with the aim of preventing the methane rules from becoming a barrier to supply at a moment when Europe is again anxious about imported energy dependence.