U.S. Hopes to Resolve Metal Tariff Dispute with EU Ahead of Deadline

SEATTLE (Scrap Monster): The United States is hopeful that it can resolve its ongoing trade dispute with the European Union over metal tariffs before the end of the current month. This follows the meeting held last month between the U.S. Trade Representative (USTR) Katherine Tai and EU Trade Chief Valdis Dombrovskis.

The two sides had earlier agreed not to extend the dispute over steel and aluminum tariffs for six months, so as to negotiate a settlement in a truce that expires in November this year. Recently, the two sides had held discussions on possible cooperation on joint efforts aimed at addressing global overcapacity woes in the steel and aluminum sectors. Meantime, the spokespersons for the USTR and the EU declined to comment on the recently held talks.

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According to sources, the two sides are likely to reach a new agreement, whereby the Section 232 tariffs would be replaced with a tariff-rate quota (TRQ) arrangement. The agreement would allow entry of specified volume of EU steel and aluminum into the U.S. without duty, while applying tariffs to volumes exceeding the limit.

The EU is open to the quota system similar to those that the U.S. has with Canada and Mexico. However, the point of contention would be the volume of EU steel allowed duty-free into the U.S.