The latest on Russia sanctions from the International Trade and Supply Chain Team
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On Saturday, the United States and the European Union reached an agreement on section 232 duties being imposed because of global steel and aluminum excess capacity concerns.  The trading partners have agreed that the U.S. will adjust tariffs on steel and aluminum to allow elimination of certain U.S. section 232 duties, and the EU will suspend its retaliatory tariffs. While many details are yet to be released, the following guidelines are available:

  • The U.S. will replace Section 232 tariffs with tariff-rate quotas (TRQs) for EU steel and aluminum products.
  • The EU will suspend its retaliatory tariffs in response to the U.S. Sections 232 tariffs.
  • Both the U.S. and EU agreed to coordinate on trade remedies and customs matters.
  • Both partners agreed to further negotiate an arrangement for the steel and aluminum sectors through a technical working group that addresses non-market excess capacity and carbon production.
  • The EU agreed to ensure market-oriented conditions in this sector. Reports are that the TRQs will begin on January 1, 2022, across 54 product categories, with an annual 3.3 metric ton limit.  Products that are currently covered by Section 232 exclusions are said not to count against the quotas. Those exclusions will automatically renew through the end of 2023.  For both steel and aluminum, derivative products will no longer be subject to tariffs or quotas.
  • All products entered under the quota will have to be certified as being melted and poured in the EU.
  • For aluminum, reports are that the tariff-free quota is 18,000 metric tons for unwrought aluminum, under 2 product categories, and 366,000 metric tons for semi-finished aluminum under 14 product categories.

Husch Blackwell LLP’s International Trade & Supply Chain team continues to monitor these developments closely and will provide updates as additional information becomes available.

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Photo of Jeffrey Neeley Jeffrey Neeley

Jeffrey has more than 25 years of experience representing private parties in international trade remedies disputes in the U.S. and in foreign jurisdictions. He guides clients in matters including antidumping investigations, countervailing duties, subsidies, intellectual property disputes as well as related customs, export…

Jeffrey has more than 25 years of experience representing private parties in international trade remedies disputes in the U.S. and in foreign jurisdictions. He guides clients in matters including antidumping investigations, countervailing duties, subsidies, intellectual property disputes as well as related customs, export control, and other import/export issues.

Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory…

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.

Photo of Julia Banegas Julia Banegas

Julia is an associate in the Washington, DC office of Husch Blackwell. She advises clients doing business in the heavily-regulated Government Contracts and International Trade sectors.