Global News Of Note: EU, British Government Announce New Metals Tariff Decisions

What happens abroad impacts MSCI members in North America. Here is the latest economic, trade, and other policy news of note for the last week:

• On June 30, the European Commission amended the European Union’s steel safeguard regulation to create two new tariff rate quotas (TRQs) for certain steel products released for free circulation in Northern Ireland from other parts of the United Kingdom. Since the decision took effect July 1, 2023, companies in Northern Ireland can use the EU’s steel TRQs to access UK-origin steel without needing to pay the 25 percent tariff linked to the EU safeguard measures currently in place for steel imports into the EU.
• The EU also has rejected a solution offered by the U.S. government to end tariffs on steel and aluminum. According to The Financial Times, the EU’s decision has heightened fears of a renewed transatlantic trade dispute. The dispute concerns the Section 232 tariffs imposed by former President Donald Trump, which were set at 25 percent for steel products and 10 percent for aluminum products. The EU said the United States’ proposed solution is likely to breach World Trade Organization rules since it discriminates in favor of domestic producers. As The Times noted, if the two sides cannot reach an agreement, the Section 232 tariffs will kick back in automatically in October 2023, as will EU retaliatory measures. Read the full article here.
• According to Reuters, the British government has decided to keep in place anti-dumping measures on heavy plate steel from China for another five years. The announcement came several months after the British government opted to keep in place duties on reinforcement steel from China and cold rolled flat steel from China and Russia.