EU and US reach breakthrough deal on Trump-era steel and aluminium tariffs

The EU and US agreed to start discussions on a Global Arrangement on Sustainable Steel and Aluminium (31 October) and suspend steel and aluminium trade disputes, on the sidelines fo the G20 summit in Rome. Both leaders paid tribute to the hard work of their trade representatives, Katherine Tai and European Executive Vice President Valdis Dombrovskis. 

U.S. President Joe Biden said the deal marked a new milestone in the transatlantic relationship, and in EU-US efforts to achieve the decarbonisation of the global steel and aluminium industries in the fight against climate change. The two Presidents also agreed to pause the bilateral World Trade Organization disputes on steel and aluminium. 

EU/US relations were sorely tested over the AUKUS submarine deal and the precipitous exit of US forces from Afghanistan, leaving the EU scrambling for solutions and angry from the new U.S. administration’s lack of consideration. Along with the EU-US Trade and Technology Council and the suspension of tariffs in the Boeing-Airbus disputes, relations appear to be on the right path again

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Steel and aluminium manufacturing is one of the highest carbon emission sources globally. The EU has proposed a carbon border adjustment mechanism for the import of CO2 intensive products, the mechanism will apply to those countries which do not take measures to reduce the carbon footprint of this sector.  The leaders also agree to address overcapacity in the sectors. 

President von der Leyen said: “Defusing yet another source of tension in the transatlantic trade partnership will help industries on both sides. This is an important milestone for our renewed, forward-looking agenda with the US.”

President Biden described the agreement as a major breakthrough that would address climate change while protecting American jobs and American industry: “Together, the United States and the European Union are ushering in a new era of transAtlantic co-operation, that's going to benefit all of our people, both now and I believe in the years to come. It's a testament to the power of our strong partnership, and to what the United States can accomplish by working together with our friends.”

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