WASHINGTON/ROME (Reuters) - The United States and European Union have agreed to end a festering dispute over U.S. steel and aluminum tariffs imposed by former president Donald Trump in 2018, removing an irritant in transatlantic relations and averting a spike in EU retaliatory tariffs, U.S. officials said.
Commerce Secretary Gina Raimondo told reporters that the deal will maintain U.S. “Section 232” tariffs of 25 percent on steel and 10 percent aluminum, while allowing “limited volumes” of EU-produced metals into the United States duty free.
It eliminates a source of friction between the allies and lets them focus on negotiating a new global trade agreement to address worldwide excess steel and aluminum capacity and reduce carbon emissions from the industries.
EU trade chief Valdis Dombrovskis confirmed the deal, writing on Twitter that “we have agreed with US to pause” the trade dispute and launch cooperation on a future global arrangement on sustainable steel and aluminum.