Suspension of EU tariffs on certain US products has been saved
Suspension of EU tariffs on certain US products
European Commission suspends the planned increase of additional import duties
On 28 May 2021, the European Commission adopted Implementing Regulation (EU) 2021/866, suspending the increase of additional import duties on certain US products, previously scheduled to take place on 1 June 2021. The suspension applies until 1 December 2021.
On 20 June 2018, the European Union (EU) adopted additional import tariffs on certain US products in response to the increase of US duties on steel and aluminum products from the EU under Section 232. Those duties affected such US products as whiskey, motorbikes and sports shoes, among others. The increase of EU duties was scheduled to take place in two stages. The first stage would see the increase of import duties up to 10 % and 25 %; whereas at the second stage, which was scheduled to take effect on 1 June 2021, further increases of up to 10 %, 25 %, 35 % and 50 % would apply.
Measures being suspended
On 17 May 2021, the EU and United States issued the Joint European Union-United States Statement on addressing global steel and aluminum capacity, whereby both parties agreed to enter into discussions on the mutual resolution of concerns in that area. Following the mentioned statement, the European Commission adopted Regulation (EU) 2021/866 suspending the increase of EU tariffs, which was scheduled to take place on 1 June 2021 as the second stage of the EU response to the US tariffs.
No concurrent changes have been announced to the additional tariffs on steel and aluminum products from the EU currently maintained by the United States.
Impact on business
The EU tariff increase suspension is to remain in force up to and including 30 November 2021 and the increased tariffs are currently scheduled to apply as of 1 December 2021.
The suspension of additional EU tariffs is a relief to US industries affected by these tariffs, such as producers of certain alcoholic beverages, motorcycles, motorboats and sports shoes. It could also provide the impetus for both parties to resolve their differences in other sensitive areas.
How we can help
Deloitte’s Global Trade Advisory specialists are part of a global network of professionals who provide specialized assistance in global trade matters. We offer services related to tariff classification, customs valuation and duty mitigation techniques.
If you have any questions about the impact of the EU suspension of additional duties on your business, do not hesitate to contact us.