The United States and the European Union (EU) are reportedly discussing the introduction of new tariffs targeting the steel overproduction of certain countries, including China.
Bloomberg News cited sources familiar with the matter on the 7th (local time), reporting that "these tariffs are primarily focused on steel imports from China that benefit from non-market practices." Details such as the range of countries other than China to which the new tariffs will apply and the tariff rates are still under negotiation.
The news agency added that the US and the EU are expected to provide an international framework that would allow other countries to join the new tariff system in the future.
This agreement is expected to be part of the 'Global Steel Agreement' between the US and the EU.
The Global Steel Agreement is a measure pursued by both sides since 2021 to end the dispute with the EU that arose when the former US administration under Donald Trump imposed high tariffs of 25% on imported steel and 10% on aluminum in 2018, citing national security threats.
The negotiation deadline is October 31 of this year, but it is reported that reaching a final agreement within the year is difficult due to differences in positions on issues such as imposing tariffs on steel products that do not meet environmental standards like carbon emissions.
According to sources, the background for discussing the new tariffs is to reach a provisional agreement before the meeting scheduled at the end of October between US President Joe Biden and EU Commission President Ursula von der Leyen.
The US Trade Representative (USTR) declined to comment on the report, and an EU Commission spokesperson only stated that both sides are committed to finding a solution before the negotiation deadline expires.
According to data from the Organisation for Economic Co-operation and Development (OECD), China is the largest producer, manufacturing more than half of the world's steel raw materials.
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