The European Union and the United States have reached a truce in their steel tariff dispute, the European Commission announced on Monday.
The EU agreed not to increase retaliatory tariffs in the steel dispute, as had initially been planned for June 1, arguing that it was in both sides’ interest not to raise the stakes further.
Former US president Donald Trump imposed tariffs on steel and aluminium imports from Europe.
In retaliation, the EU imposed tariffs on goods including whiskey, jeans and motorbikes from the US.
The two partners will now begin talks on the matter, with a view to settling the dispute by the end of the year, according to a joint statement.
Both sides aim to “preserve our critical industries,” according to the statement by commission Vice-President Valdis Dombrovskis, US Trade Representative Katherine Tai and US Secretary of Commerce Gina Raimondo.
“To ensure the most constructive environment for these joint efforts, [both sides] agreed to avoid changes on these issues that negatively affect bilateral trade,” the joint statement reads.
They also agreed that it was in their common interest to work together to hold “countries like China that support trade-distorting policies to account.”
Dombrovskis – the EU’s trade commissioner – said the truce “gives us space to find joint solutions to this dispute and tackle global excess capacity.”
US politicians responsible for trade policy had initially signalled that the new administration under President Joe Biden would stick to the tariffs of his predecessor.