U.S. and EU agree to a truce on steel and aluminum tariffs

United States Trade Representative Katherine Tai, U.S. Secretary of Commerce Gina M. Raimondo, and European Commission Executive Vice President Valdis Dombrovskis announced on Monday the start of discussions to address global steel and aluminum excess capacity.

During a virtual meeting last week, the leaders acknowledged the need for effective solutions that preserve critical industries, and agreed to chart a path that ends the WTO disputes following the U.S. application of tariffs on imports from the EU.

The disagreement started in 2018 when former U.S. President Donald Trump imposed duties on steel and aluminum from Europe, Canada, Asia and elsewhere citing risks to U.S. national security. The European Union (EU) has since retaliated and imposed tariffs on a range of American products which were set to increase considerably June 1.

Both sides now agreed that, as the United States and EU Member States are allies and partners, sharing similar national security interests as democratic, market economies, they can partner to promote high standards, address shared concerns, and hold to account countries like China that support trade distorting policies.

They agreed to enter into discussions on the mutual resolution of concerns in this area that addresses steel and aluminum excess capacity and the deployment of effective solutions, including appropriate trade measures, to preserve critical industries.

To ensure the most constructive environment for these joint efforts, they agreed to avoid changes on these issues that negatively affect bilateral trade.