EU and US Extend Tariff Truce to Prevent New-Year Trade Disruptions

The European Union and the United States have agreed to extend the truce on steel and aluminum imports, suspending retaliatory measures for 15 months. However, the EU was unable to persuade the US to improve its current tariff-rate quotas. The extension will save EU steel and aluminum exporters approximately €1.5 billion annually. Both sides are working towards a permanent solution through the Global Arrangement on Sustainable Steel and Aluminum, but disagreements remain over tariff-rate quotas. The EU may consider relaunching a case against the US at the World Trade Organization or reimposing tariffs, although this lacks broad support among EU member states.