Trade Cases
US extends tariff-rate quotas with EU through 2025
Written by Laura Miller
December 29, 2023
The US is extending the tariff-rate quota (TRQ) agreements on steel and aluminum imports from the European Union for another two years.
In two presidential proclamations on Dec. 28, President Joe Biden announced an extension of the quotas currently in place for steel and aluminum imports from the EU through Dec. 31, 2025.
The quotas allow for up to 3.3 million metric tons of steel, 18,000 metric tons of unwrought aluminum, and 366,040 metric tons of semi-finished wrought aluminum melted and poured in the EU to be brought into the US without facing the traditional 232 tariffs. Any steel or aluminum imports above those levels will continue to be subject to tariffs of 25% and 10%, respectively.
Earlier this month, the EU announced it would suspend retaliatory tariffs on US steel and aluminum products through March 31, 2025.
Domestic industry supports the decision
Two associations representing the domestic steel industry – the Steel Manufacturers Association (SMA) and the American Iron and Steel Institute (AISI) – cheered the extension of the TRQs.
The “proclamation sets the stage for continued discussions on the proposed Global Arrangement on Sustainable Steel and Aluminum,” noted Philip Bell, president of the SMA.
“SMA supports the US government’s solution-focused approach toward an agreement that addresses both non-market excess capacity and reducing carbon emissions from around the world,” he added.
AISI also welcomed the two-year extension of the TRQs to allow for additional time for negotiations for a Global Arrangement.
“The American steel industry strongly supports the administration’s efforts to establish new mechanisms to address effectively global non-market excess capacity in steel and the higher carbon intensity of imported steel versus clean American steel,” commented AISI president and CEO Kevin Dempsey in a statement.
“In doing this, the President is making sure we continue to have vibrant steel and aluminum industries in the United States, which are especially crucial for safeguarding our national security.”
US Secretary of Commerce Gina Raimondo commented that the move shows Biden’s “commitment to defending US industry from uncertain or adverse economic conditions.”
“In doing this, the President is making sure we continue to have vibrant steel and aluminum industries in the United States, which are especially crucial for safeguarding our national security,” she added.
Laura Miller
Read more from Laura MillerLatest in Trade Cases
Price: How did ‘Buy Clean’ get switched to ‘Buy Dirty’?
The Inflation Reduction Act (IRA) appropriated more than $4 billion to the General Services Administration (GSA) and Federal Highways Administration (FHWA) for “Buy Clean” programs. The statute makes clear that GSA and FHWA purchases under these programs are limited to those with “substantially lower” emissions. There is no ambiguity in that requirement. The Environmental Protection Agency (EPA) has defined “substantially lower” to mean products with the lowest 20% of embodied emissions when compared to similar materials.
Domestic producers prevail in Japanese tin mill product trade case
A vote on Friday by the International Trade Commission (ITC) ensures that antidumping duties on certain steel sheet imports from Japan will continue for the mid-term.
Op-Ed: Strong trade enforcement builds prosperity and security
Tariffs on unfairly traded steel and other products help to stabilize America’s most important industries, safeguard tens of thousands of jobs, and protect national security. My union, the United Steelworkers (USW), never seeks these remedies lightly. And presidents, Republican and Democrat alike, implement them only after diligent investigations documenting the harm that foreign adversaries intentionally inflict upon our country with dumping, overproduction and other kinds of trade cheating. I don’t think Lewis Leibowitz considered these points while criticizing tariffs in his excessively pro-free-trade column, “Where is the voice of the consumer?” on May 5.
Leibowitz on trade: Where is the voice of the consumer?
The election campaign is white-hot right now, and the Biden administration is touting its protectionist message. Just this past week, the Office of the US Trade Representative (USTR) touted this message. In a release entitled “What They are Saying,” USTR quoted many of the usual protectionist groups praising government action against Chinese steel exports and shipbuilding. Consuming industries in the United States, which employ many times the American workers as the industries seeking trade protection, were not mentioned.
Price: Why have steel emissions policies forgotten about recycling?
Steelmaking currently accounts for approximately 8% of global greenhouse gas emissions. The only way to achieve net zero goals is to significantly reduce steel emissions worldwide. And there is no way to do that without recycling.