The European Union is working on an interim deal with the US that would introduce new tariffs aimed at excess steel production from China and other countries in order to end a Trump-era trade conflict, Bloomberg reports
The levies would primarily be focused on imports from China that benefit from non-market practices, Bloomberg reported earlier this month. The provisional political agreement on the so-called Global Steel and Aluminum Arrangement is expected to be announced at an Oct. 20 summit in Washington, according to people familiar with the plans.
The scope of the measures, including other countries that could be targeted and the level of the tariffs, are still being discussed. They are also expected to provide a framework for other nations to join in the future. The two main planks of the GSA would seek to tackle non-market excess capacity and carbon emissions.
The deal — which would fall short of a legally binding agreement — seeks to settle a dispute that started when President Donald Trump slapped tariffs on metals imports from Europe, citing risks to national security. Failure to reach an accord by Oct. 31 would mean that levies on $10 billion of exports between the EU and US would automatically come back into force at the start of 2024.
The US has imposed a 25% tariff on steel imports since 2018 and the EU applies about the same level of duties on an array of steel imports under its own safeguard measures. That level of tariff would act as a reference point that can then be adjusted on a case-by-case basis, Bloomberg reported earlier.