Indications of Steel and Aluminum Quotas for EU in Trade Deal

Aug. 8, 2025
By: Chaney A. Finn

While we know that there is a “framework” for a trade deal between the U.S. and EU, the details are not clear. One possibility that seems to be in the framework (although we don’t know if or when it would be implemented) is tariff rate quotas (“TRQ”) instead of 232 tariffs on European steel and aluminum imports.

TRQs generally have a quota amount that may be imported without a specific duty (here 232), with all amounts in excess of the TRQ being subject to the 232 duty. European Commission trade spokesperson Olof Gill discussed this development at a press briefing, stating that more detail and a joint statement with U.S. delegates will follow. Assuming a new TRQ regime is similar to the one EU exporters lived with until earlier this year there is a likelihood that well-planned imports will avoid all 232 tariffs. We will share more information once it becomes available.

Domestic metals production poses national economic and security implications for both the U.S. and EU, and metals trade has been a point of contention pertaining to U.S. tariffs since the first Trump administration. The development of a metals alliance between the trading blocs has been floated during negotiations, intended to mitigate the impact of subsidized Chinese production on global markets.

The (pre-emptive) TRQ announcement builds on the U.S. – EU trade agreement framework and comes after President Trump’s most recent “reciprocal” tariffs Executive Order that set rates on exports from numerous countries, and provides special accommodation for some EU exports. Specifically, the order set a 0% reciprocal tariff on products where the existing most favored nations rate (Column 1) is under 15%, and a 15% IEEPA tariff minus the existing most favored nations rate. Reciprocal and IEEPA rates appear to be, among other things, contingent on mutual investment in key industries and are subject to change.

We will continue to provide insight into these developments as detail becomes available. Should you have any questions about the trade agreement framework, reciprocal rate, or most favored nations rate, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.