EU Seeks to Resume Negotiations with US on Steel Tariffs

EU Proposes Tariff Quotas to Revive Steel Negotiations with US

The European Commission intensifies efforts to reopen talks with the United States on steel and aluminum tariffs. European Commissioner for Trade Maroš Šefčovič will meet US Trade Representative Jason Greer during the ASEAN ministerial summit in Kuala Lumpur. Šefčovič plans to raise the EU’s proposal to abolish or significantly reduce tariffs through a quota system. Despite no formal US response yet, the Commission emphasizes the critical importance of resolving tariff barriers to support the European steel industry.

The EU’s approach follows the July 2025 trade agreement, where the US imposed a 15% tariff on many European goods. Meanwhile, the EU committed to lifting tariffs on American industrial products. Notably, the US maintains a 50% tariff on steel and aluminum imports from Europe and extended these tariffs in August 2025 to over 400 steel- and aluminum-derived products. The EU proposes introducing tariff quotas with minimal or no tariffs to ease tensions and restore market balance.

Steel Tariffs Impact and UK’s Separate Approach

Tariffs remain a significant barrier to transatlantic steel trade. The EU’s call for tariff reductions reflects the industry’s urgent need to regain competitiveness amid heightened costs. The UK’s decision to suspend tariff reduction talks with the US ahead of former President Donald Trump’s state visit contrasts with the EU’s diplomatic push. Instead, the UK aims for a permanent 25% tariff guarantee, signaling a more cautious stance on tariff negotiations.

The ongoing tariffs contribute to market uncertainty, affecting steel producers and end-users across Europe and North America. Both sides recognize the importance of resolving these trade disputes to foster industrial growth and cooperation. However, US reluctance to engage on tariff quota proposals delays progress.

SuperMetalPrice Commentary:

The EU’s push to resume negotiations on steel tariffs represents a strategic effort to reduce trade frictions with the US. The proposal for tariff quotas could serve as a pragmatic compromise, balancing protectionism with market access. However, the US response remains critical, and without engagement, European steelmakers face continued cost pressures. Market watchers should monitor upcoming talks for signs of breakthrough, as resolution could influence steel prices and supply chains globally.