Trade Cases
October 31, 2021
U.S. to Lift Section 232 on EU, Replace It With Tariff Rate Quota
Written by Tim Triplett
The U.S. and European Union (EU) announced a deal this weekend that removes Section 232 tariffs on imports from the EU and replaces them with a tariff rate quota (TRQ) system. The agreement ends a dispute dating back to 2018 when President Trump imposed Section 232 tariffs on steel and aluminum imports, and it heads off retaliatory tariffs threatened by the EU. Initial reaction to the truce between the U.S. and EU is generally positive, though trade groups in the U.S. call for strict enforcement of the quota limits to keep “unfair” imports from U.S. shores.
SMU reported on Friday that an agreement was imminent.
