The European Union is working on an interim deal with the US that would consist of tariffs aimed to prevent excess steel production from China and other countries.
The deal is intended to end a trade conflict that originated during the Trump administration.
According to a report by Bloomberg, the levies would primarily be focused on imports from China that benefit from non-market practices. The provisional political agreement on is expected to be announced at a summit in Washington later this month.
The scope of the measures, including other countries that could be targeted and the level of the tariffs, are still being discussed. They are also expected to provide a framework for other nations to join in the future.
The deal seeks to settle a dispute that started when former US president Donald Trump placed tariffs on metals imports from Europe, citing risks to national security. Failure to reach an accord by the end of October would mean that levies on $10 billion of exports between the EU and US would automatically come back into force at the start of 2024.
The US has imposed a 25% tariff on steel imports since 2018 and the EU applies a similar level of duties on an array of steel imports under its own safeguard measures.
Source: Bloomberg
