The US and the European Union have agreed to suspend their trade conflict on steel and aluminium tariffs until March 2025, aligning with the US presidential election schedule. Initially introduced by Donald Trump and later paused under Joe Biden’s administration, this move allows Biden to maintain support from EU allies while projecting a tough stance on trade domestically. The pause preserves stability but doesn’t resolve the trade dispute, keeping the appearance of strength for Biden while supporting industries in crucial states like Pennsylvania and Ohio. The conflict began in 2018 when the US imposed tariffs on EU steel and aluminium, met with EU tariffs on various US products. Despite WTO ruling against these tariffs, the dispute remained unresolved. Both sides aim to address global overcapacity and decarbonization in the steel and aluminium industries, but a permanent solution remains elusive. The US collected tariffs on EU steel and aluminium imports that exceeded quota, and the UK negotiated exemptions from these tariffs. The EU and US are also negotiating a global deal on steel and aluminium production to tackle climate change and dumping practices. However, a broader resolution on trade talks and reforming global trade rules, including the WTO, faces uncertainty, with low expectations for progress at an upcoming WTO meeting in February.
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