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Economy

Can EU-US Talks on Steel and Aluminum Tariffs Finally Break the Impasse?

EU, U.S. trade chiefs meet to discuss stalled steel/aluminum tariffs. EU proposes reduction; U.S. response pending.

byAndres Castro

September 24, 2025, 10:57 AM

Executive Summary

EU trade chief Maros Sefcovic and U.S. Trade Representative Jamieson Greer are scheduled to meet in Kuala Lumpur to revive discussions on stalled steel and aluminum export tariffs.

The European Union has proposed eliminating or significantly reducing current tariffs on steel and aluminum, suggesting a tariff-rate quota, but has not yet received a formal U.S. response to this offer.

The U.S. Trade Representative’s office clarified that metal tariffs are handled by the Commerce Department, with neither department providing immediate comment to Reuters.

The Story So Far

The ongoing meeting between EU and U.S. trade representatives aims to resolve persistent tensions over steel and aluminum tariffs, which were originally imposed by the U.S. and have significantly impacted transatlantic trade. These duties have led to an impasse in negotiations, with the European Union formally proposing to either eliminate or substantially reduce the tariffs, a proposal for which they have not yet received a formal response from the United States.

Why This Matters

The scheduled meeting between EU and U.S. trade officials signals a renewed diplomatic push to resolve the long-standing transatlantic dispute over steel and aluminum tariffs, which have impacted trade flows since their imposition. However, the EU’s unaddressed proposal for tariff reduction or quotas, coupled with the U.S.’s lack of formal response, indicates that a swift resolution remains uncertain, leaving businesses and industries reliant on these metals facing continued ambiguity regarding future trade conditions.

Who Thinks What?

The European Union, through Maros Sefcovic, has proposed either eliminating or significantly reducing current steel and aluminum tariffs, or establishing a tariff-rate quota, and is awaiting a formal response from the United States.

The United States has not yet formally responded to the EU’s offer, with the U.S. Trade Representative’s office clarifying that metal tariffs are handled by the Commerce Department, and neither department providing immediate comment.

EU trade chief Maros Sefcovic is scheduled to meet U.S. Trade Representative Jamieson Greer this week in Kuala Lumpur to revive discussions on stalled steel and aluminum export tariffs, a development reported by Bloomberg News on Wednesday. The high-level meeting, occurring on the sidelines of an ASEAN ministerial summit, aims to break the impasse in negotiations over duties impacting transatlantic trade.

EU’s Proposal and Stalled Dialogue

The European Commission has formally proposed either eliminating or significantly reducing the current tariffs on steel and aluminum. However, Sefcovic informed Bloomberg in an interview that the European Union has not yet received a formal response from the United States regarding this offer.

According to Sefcovic, the most pragmatic step forward would involve establishing a tariff-rate quota. This mechanism would allow for low or even no tariffs on specific volumes of these metals, potentially easing trade tensions.

U.S. Response and Departmental Purview

When Bloomberg sought comment on the matter, the U.S. Trade Representative’s office clarified that metal tariffs are handled by the Commerce Department. Neither the U.S. Trade Representative nor the Commerce Department provided an immediate response to Reuters’ subsequent requests for comment.

Outlook on Trade Negotiations

The impending meeting between Maros Sefcovic and Jamieson Greer represents a renewed diplomatic push to address the long-standing dispute over steel and aluminum tariffs. The European Union’s clear proposal for tariff reduction underscores its commitment to resolving the issue, while the U.S. position remains under review, indicating the continued complexities in transatlantic economic relations.