Brussels has welcomed a recent order from former U.S. President Donald Trump reinstating tariff rate quotas on steel and aluminum imports from the European Union, Japan, and the United Kingdom. The move, announced September 25, 2024, effectively upholds the terms of a 2018 agreement while notably omitting any reference to Trump’s prior threats of escalating tariffs-a shift that European officials are interpreting as a positive sign.The reinstatement of the quotas, which had been suspended during trade negotiations, impacts a notable volume of metal imports. While the agreement avoids a potential trade war escalation, it maintains existing trade barriers, affecting steel and aluminum producers on both sides of the Atlantic. The decision comes as global trade tensions remain elevated, and the EU is actively seeking to diversify its supply chains and strengthen its economic partnerships.
The original 2018 tariffs were imposed by the Trump administration under Section 232 of the Trade Expansion Act of 1962, citing national security concerns.the EU, along wiht Japan and the UK, responded with retaliatory tariffs on U.S. products. The agreement reached later that year temporarily removed the tariffs, contingent on monitoring import volumes.
A European Commission spokesperson stated that Brussels views the order as a “constructive step” and a demonstration of commitment to the existing trade framework. However, the spokesperson also emphasized the EU’s continued desire for a complete removal of all trade barriers, including the reinstated quotas. The move is being closely watched by industry groups and policymakers as a potential indicator of future U.S. trade policy.
