Before the talks to be held between the EU and the US on Wednesday, May 30, European Union Trade Commissioner Cecilia Malmstrom signaled that the EU will likely not to be granted a permanent and unconditional exemption from the US Section 232 tariffs on steel and aluminum imports.
Malmstrom said that, if the US decides to exempt the EU from duties, it will probably implement quotas for the region. “The question is whether that would be a hard cap, meaning volume limits above which no further EU exports would be possible, or a soft cap, under which further exports would be possible but under duties,” she added.
The EU trade chief indicated that, if the US imposes quotas, the EU will be prepared for an immediate retaliation.
The EU was initially granted an exemption from the Section 232 tariffs until May 1 and the deadline was subsequently extended to June 1.