This is a good deal for the US steel industry as it maintains the 25% 232 tariffs and enacts a new quota of 3.3 million tons per year that can be imported duty free from the EU for steel only made in the EU. It also extends by 2 years the 2 million tons of specific products previously approved for tariff-free imports.
Prior to the tariffs, US imported ~ 5 million tons per year from the EU that included some coming from Turkey originating in China.
CLF issued a press release last night supporting this.
“Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer, said, “Today’s announcement of an alternative Section 232 measure with the EU is evidence that President Biden and his Administration understand the critical role of the steel Section 232 program in providing a level playing field for American companies and workers. This tariff rate quota arrangement will guard against a harmful surge of steel imports from the EU.
The agreement recognizes that the United States has the most environmentally friendly steel industry in the world. Cleveland-Cliffs produces high-quality flat-rolled steel products with all stages of production occurring in the United States, from the mining of key raw materials through melting and finishing. In furtherance of Cleveland-Cliffs’ commitment to decarbonization, the Company has spent more than $1 billion since 2017 to build the world’s most technologically-advanced direct reduction plant in Toledo, Ohio. This plant produces hot briquetted iron that is 70% less CO2 intensive than imported metallics such as pig iron.
I wish to thank Secretary of Commerce, Gina Raimondo, and United States Trade Representative, Ambassador Katherine Tai, for negotiating a deal that respects the importance of maintaining strong Section 232 measures to the benefit of U.S. national and economic security.”
