EU and US Extend Trade Truce, Avoiding New Tariffs

The European Union has extended its trade truce with the United States for an additional 15 months, preventing the automatic imposition of tariffs on trans-Atlantic trade worth billions of euros on January 1. The truce, which was set to expire at the end of this year, was initially agreed upon in October 2021 to resolve a trade dispute over aluminium and steel. The extension provides market stability and business confidence for importers and exporters, but EU exporters still face levies on trade exceeding tariff-free quotas. Negotiations are ongoing for a permanent removal of Trump-era tariffs, with a focus on a 'green steel club' that taxes steel producers based on carbon intensity.