Key Points
- The EU is concerned that the U.S. is expanding its list of products subject to high tariffs on steel and aluminum.
- Officials believe this goes against the spirit of the trade deal signed in August, which set a 15% tariff ceiling.
- The EU still faces a 50% duty on its steel and aluminum exports, as well as on over 400 other related products.
- EU trade ministers will raise the issue with the U.S. Commerce Secretary at a meeting on November 24.
European Union officials are worried that a U.S. push to add more EU products to its list of items subject to higher steel and aluminum tariffs goes against the spirit of the trade agreement they signed this summer.
The EU’s trade chief, Maros Sefcovic, and trade ministers from the bloc’s 27 member states plan to bring up the issue with U.S. Commerce Secretary Howard Lutnick when they meet in Brussels on November 24.
The trade deal, which was agreed upon by European Commission President Ursula von der Leyen and U.S. President Donald Trump in August, was supposed to remove many of the EU’s tariffs on American goods. In return, it set a 15% tariff ceiling on most European products entering the U.S.
However, the EU is still facing a 50% duty on its steel and aluminum exports, as well as on many other products that contain these metals. Washington updates the list of products subject to this higher tariff several times a year. The EU is concerned that the growing number of goods hit by this 50% tariff—currently over 400 items—will weaken the trade deal and the agreed-upon 15% tariff ceiling.
The EU believes that the spirit of the agreement means the 15% rate should apply to industries beyond just the ones explicitly mentioned in the deal, such as cars and chips. The European Commission also wants a quota system that would allow a certain amount of metal exports to be subject to lower duties.
For its part, Washington has been pushing for a legally binding agreement, similar to those it has with other countries. The EU is hesitant to commit to a legally binding deal because it would complicate the approval process, requiring more involvement from member states and the European Parliament.
To show its commitment to the trade deal, the EU shared a draft action plan with the U.S. last week. The plan covers five areas, including tariffs, economic security, regulatory cooperation, and working together on steel and aluminum to address global overcapacity.
