US and European Trade Groups Ask US, EU to Solve Steel and Aluminum Dispute
Fifteen trade groups in the U.S. and the EU, led by a German machinery manufacturing organization, are asking the EU and the U.S. to settle their differences over American tariffs on steel and aluminum, and if they cannot by the end of the year, "at the very least, ensure that tariffs will not be reimposed if an agreement is not reached by the January 2024 deadline, even if this means that the deadline is extended." Technically, the two sides gave themselves an Oct. 31, 2023, deadline, but said that even if a deal was not reached by then, tariffs could not return until January 2024.
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The VDMA shared the letter with a news release Oct. 12. MEMA, The Vehicle Suppliers Association; the National Foreign Trade Council; and the United States Council for International Business also were signatories.
"American manufacturers faced higher costs stemming from increased prices of steel and aluminum, while American exporters of products like motorcycles, steel and aluminum products, and household appliances all faced new barriers to the European market as a result of the EU’s retaliatory tariffs. Meanwhile, European manufacturers were harmed by increased prices for American exports of flat-rolled products, bars, rods, wires, tubes, pipes, and tanks, which were all designated under the EU’s retaliatory tariffs," they wrote.
They said the temporary replacement of tariffs with tariff rate quotas was a step in the right direction, but importers of European steel "still face additional compliance costs associated with the TRQ system. These importers pay the 25 percent tariff up front and then apply for a reimbursement, but these refunds are often delayed or even rejected."
The groups said the U.S. and the EU should "resolve this trade dispute once and for all" and should treat each others' products equitably.
"A durable agreement that would reduce steel and aluminum trade barriers between the EU and the U.S. would reduce input costs for transatlantic producers of manufactured goods and incentivize trade flows between the two markets," they wrote.