By SEMA Washington, D.C., Staff
The U.S. and European Union (E.U.) have agreed to end a three-year dispute over steel and aluminum tariffs. Effective January 1, 2022, the U.S. will no longer impose 25% tariffs on steel (sheets, bars, tubes, etc.) and 10% on aluminum, and will instead use a quota system for EU imports. The agreement will also apply to derivative products made in the EU and subject to the tariffs such as steel bumper stampings (HTSUS 8708.10.30).
The U.S. and Japan are now pursuing a new commercial and Industrial Partnership to bolster economic ties, including strengthening supply chains, export controls and innovations such as digital technologies. As part of the discussions, the two countries have agreed to pursue a quota approach that will allow the metal tariffs to be removed.
The Trump Administration imposed the metal tariffs in 2018 under Section 232 of U.S. trade law, citing a dependence on foreign sources posed a national security threat. Argentina, Australia, Brazil and South Korea were excluded based on quotas and Canada and Mexico were eventually excluded based on the USMCA trade agreement. Although the tariffs have been imposed world-wide, a primary issue to be addressed is global over-production of the metals, especially by China.
For more information, contact Stuart Gosswein at stuartg@sema.org.