EU Extends Stop to Tariffs on US Aluminum and Steel Import

Politics - January 9, 2024

A Decision That Reflects the European Commitment to Maintain Economic Stability and Promote Closer and Fruitful Transatlantic Cooperation.

In recent years, also due to difficult of the international geopolitical situations, trade between countries has been the subject of tensions and disputes, with duties and tariffs that have undermined economic relations between the main world powers. In this context, a significant move was that of the European Union (EU) in prolonging the halt to tariffs on aluminium and steel from the United States. The EU’s extension of its halt to tariffs on US aluminium and steel was driven by several key factors. First, the European Union has sought to avoid a trade war with the United States, one of its major trading partners. The imposition of tariffs, then, could have led to reprisals, triggering a cycle of trade tensions harmful to both economies.

The decision to extend the stoppage, then, reflects the EU’s desire to promote multilateral cooperation and resolve trade disputes through dialogue rather than through punitive measures. The international debate on trade has highlighted the importance of global economic governance based on diplomacy and negotiation. The extension of the halt to tariffs on US aluminium and steel will have significant impacts on the industry and economy of both parties involved. First, businesses that depend on importing aluminium and steel from the United States will benefit from price stability, allowing them to more effectively plan operations and maintain competitiveness in international markets.

The dynamic triggered by the European choice will most likely see the aluminium and steel producing industries in the United States benefit from an increase in exports to the European Union and this could have a positive impact on employment and production in the related industries, helping to strengthen the US manufacturing sector. Furthermore, the elimination of tariffs will favour overall economic growth, since greater fluidity in international trade can stimulate investments and encourage job creation also in the old continent. The European Union and the United States, by working together to maintain an open trading environment, can also strengthen their position vis-à-vis other emerging global economies seeking strategic monopoly in several industrial areas.

The extension of the halt to tariffs on US aluminium and steel represents a positive step towards building stronger trade relations between the EU and the United States but, however, it remains essential to note that this is only one aspect of the complex international trade dynamics on which, the main industrial powers, have depended for years. Further negotiations will be necessary to resolve other outstanding issues and to build a broader and more sustainable trade framework. Transatlantic cooperation is not just about trading raw materials, but also about promoting common environmental, social and safety standards, and by working together on these fronts, the EU and the US can demonstrate to the world that collaboration is essential to address global challenges such as climate change, the growing pandemic threat and poverty.

With the extension of the halt to tariffs on US aluminium and steel, the European Union is sending a strong signal of commitment and pragmatism for economic cooperation based on negotiations and dialogue rather than on bureaucratic constraints and restrictive defence measures about commerce, which are often poorly effective. The European Council’s decision has the potential to stimulate economic growth and strengthen trade relations between two of the main players in the world economy, but it will be important that the EU and the United States continue to work together to address global challenges and resolve remaining commercial disputes. Only through effective cooperation and mutual understanding will it be possible to build a solid foundation for a sustainable and prosperous commercial future that can also withstand the attacks of the “new” economic powers.

Italy, Europe’s leading producer of recycled aluminium and the second largest steel producer after Germany, applauds the initiative in the hope that it will help maintain its role in such a strategic market.