As talks continue to end U.S. steel tariffs brought in during the last administration, lobbying from U.S. steelmakers has created additional friction for policymakers in Europe and Washington hoping to make a deal.
Current tariffs on steel were introduced by President Trump in June 2018, imposing a 25 percent tariff on European steel and 10 percent tariff on aluminum on the grounds of national security. Unpopular across much of the steel industry they have nonetheless gained support from U.S. steel manufacturers who have seen a fillip as revneus have risen.
“There appears to be growing momentum behind some of the steel and aluminum tariffs being removed, but U.S. steel producers may be able to block of them from being lifted. U.S.-EU talks may only result in the U.S. lifting steel and aluminum tariffs on European producers, but not lifting the tariffs all together. The Biden administration is trying to shore up the US-Europe relationship and a lifting steel and aluminum tariffs on Europe would be another olive branch that could be offered,” Matthew Bey, Stratfor Senior Global Analyst at RANE told Breakbulk.
The EU has contested the tariffs since they were first advanced and following the failure of negotiations with the Trump administration, took the case to the World Trade Organization before imposing tit-for-tat tariffs on around US$7.8 billion of U.S. exports, including Bourbon whiskey, peanut butter and orange juice.
Felix Schoeller, General Manager of breakbulk line AAL Shipping agrees that momentum is now positive for a deal, telling Breakbulk that “From a political standpoint, President Biden is likely to reduce or remove the steel tariffs from the EU. During his presidential campaign, President Biden made it very clear that he will find the right balance between Trump’s all-out trade war and an indiscriminatory free trade agreement. Furthermore, President Biden has stressed more than once that his priority is to ensure the US keeps its position as the world’s most powerful economy – something can only be done with healthy trade agreements with other leading markets.”
Source : http://www.breakbulk.com/Articles