Tariff-free steel, aluminum products heading to U.S.

WASHINGTON—Tariff-free aluminum and steel products from the European Union will begin entering the U.S. Jan. 1.

The U.S. and EU reached an agreement Oct. 30 to modify steel and aluminum tariffs under Section 232. Under the agreement, the 25-percent tariffs will remain in place on steel and aluminum imported from European nations, but the U.S. will allow a certain amount of those materials to be imported tariff-free.

The agreement with the EU follows more than a year of skyrocketing materials and shipping costs that resulted from the global COVID-19 pandemic, and offers relief and support for American companies, according to Commerce Secretary Gina Raimondo.

"In the past year, the cost of steel used by America's auto and appliance manufacturers has more than tripled, creating increased costs for consumers," Raimondo said. "Today's news will provide much-needed relief for those workers and industries, the workers and businesses who were threatened with overwhelming retaliatory tariffs of 50 percent and American consumers, who are worried about increasing prices."

In a statement issued Oct. 30, Tom Conway, United Steelworkers International president, praised the new agreement, saying it protects American jobs, allows for global competition and remains focused on China's unfair trade practices.

"This new arrangement, which will maintain but modify Section 232 measures on steel and aluminum from the EU, will create a framework that will ensure U.S. domestic industries remain competitive and able to meet our security and infrastructure needs," Conway said.

" ... As we look to the future of our industries and jobs, it will be vital to rein in global overcapacity, stemming largely from Chinese Communist Party's state-led trade practices. Engaging with our allies is a necessary step in this process, and this arrangement offers a path forward toward working together to address this larger concern."

U.S. Trade Representative Katharine Tai noted in a statement that the agreement with the EU emphasizes the importance of reducing carbon emissions and incentivizes steps to reduce carbon emissions in the production of steel and aluminum.

"With this dispute behind us, we are in a stronger position to address global overcapacity from China with an enhanced enforcement mechanism to prevent leakage of Chinese steel and aluminum into the U.S. market," Tai said. "And the deal is a significant win on one of President Biden's top priorities—fighting climate change."

Commerce Oct. 31 hinted that additional agreements regarding steel and aluminum tariffs could be on the horizon as the U.S. remains in talks with Japan. The discussions, Commerce said, focus on "bilateral and multilateral issues related to steel and aluminum, with a focus on the impacts of overcapacity on the global steel and aluminum markets, the need for like-minded countries to take collective action to address the root causes of the problem, and the climate impacts of the sectors.

"As treaty allies who share democratic values, the United States is committed to working together with Japan to address the challenges of the 21st century, while supporting our industries and workers. The United States looks forward to working with Japan and other partners to restore market-orientation and tackle carbon-emissions across all types of production in the steel and aluminum industry."