EU: Suspension of rebalancing tariffs on U.S. products extended to March 31, 2025
Rebalancing tariffs were initially in response to U.S. “Section 232” tariffs on steel and aluminum
Rebalancing tariffs initially in response to “Section 232” tariffs on steel and aluminum
The European Union (EU) has announced its decision to extend the suspension of its rebalancing tariffs on U.S. products until March 31, 2025. The EU rebalancing tariffs on U.S. exports were initially in response to the U.S. “Section 232” tariffs on steel and aluminum.
Today’s EC release explains that the extension is the result of an agreement with the United States, with the EU prolonging the suspension of rebalancing tariffs in return for the United States extending the suspension of its tariffs for historical trade volumes reflected in the tariff-rate quota (TRQ) system established in January 2022. The United States must complete its own procedures to extend its TRQ system for EU exports of steel and aluminum as of January 1, 2024.
Background
The United States in 2018 introduced tariffs on €6.4 billion of European steel and aluminum exports. The EU responded with rebalancing tariffs on U.S. exports to the EU of a value of €2.8 billion. The EU in 2022 suspended these measures fully until December 31, 2023, to provide time to work together on a longer-term solution. The United States replaced the Section 232 tariffs with a tariff-based quota system based on historical trade volumes, resulting in above-quota EU steel and aluminum still being subject to tariffs.
For more information, contact a professional with KPMG’s Trade & Customs services:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Christopher Young |
Gisele Belotto |
George Zaharatos |
Andy Doornaert |
Jessica Libby Principal E: jlibby@kpmg.com |
| John Anderson Managing Director E: johneanderson@kpmg.com |
Jenna Leigh Glass Managing Director E: jennaleighglass@kpmg.com |
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.