EU: Information gathering on the new US tariffs on steel and aluminium products

 

The EU is conducting an information gathering notice under Regulation (EU) No 654/2014 on the new US tariffs on steel and aluminium products, and possible EU rebalancing measures in response.

On 10 February 2025, the United States of America (“United States”) announced new tariffs, effective from 12 March 2025 and set for an indefinite duration, as follows:

• An increase in the ad valorem duty rate from 10% to 25% on certain aluminum products and derivatives, including those originating in the EU.
• The imposition of a 25% duty on imports of steel and aluminum across all products covered by the Section 232 measures originally introduced in 2018 and 2020. Under these earlier measures, steel products and their derivatives were already subject to a 25% ad valorem duty, while aluminum and its derivatives were subject to a 10% duty. The new measures effectively raise the additional customs duties on aluminum from 10% to 25%.
• A 25% ad valorem duty on newly listed steel and aluminum derivative products, as detailed in Annex I of Presidential Proclamations 10895 and 10896, issued on 10 February 2025.

These measures are collectively referred to as the United States’ measures.

Regulation (EU) No 654/2014 of the European Parliament and of the Council of 15 May 2014 (the “Enforcement Regulation”) provides the legal framework for the EU to suspend concessions or other obligations under international trade agreements. This allows the EU to rebalance trade concessions when the treatment of EU goods is altered in a way that negatively impacts EU interests.

The Enforcement Regulation is particularly relevant for rebalancing measures as outlined in Article 8 of the WTO Agreement on Safeguards. In cases where EU interests are at risk, the EU may implement commercial policy measures in response, based on objective criteria. As specified in Article 5 of the Enforcement Regulation, these measures may include suspending tariff concessions or imposing new or increased customs duties.

Such commercial policy measures must be substantially equivalent to the level of concessions or obligations affected by the third country’s actions. Their determination is based on the following criteria, taking into account available information and the EU’s overall interests:

1. The effectiveness of encouraging third-country compliance with international trade rules.
2. The potential to provide relief to EU economic operators affected by the third-country measures.
3. The availability of alternative supply sources for the goods concerned, to minimize negative effects on downstream industries, contracting authorities or entities, and final consumers within the EU.
4. Avoiding excessive administrative complexity and costs in implementing the measures.
5. Any specific criteria established in international trade agreements.

To find about more about the EU trade policy, please contact us directly.