EU and USA eye new deal on steel tariffs, China exports

The news: The United States and the European Union are crafting a deal to introduce tariffs on excess steel production from China and other countries while reversing Trump-era duties on EU steel, Bloomberg reports.

The numbers: The US has imposed a 25% tariff on European steel imports since 2018, which is similar to the EU's duties on the metal's imports. Failure to reach a deal by the end of the month would lead to the automatic reinstatement of the tax on roughly USD10 billion of EU exports to the US.

The context: The deal — aimed at reducing advantage for non-market imports from China — is expected to be announced at a steel summit in Washington on 20 October. In 2018, former US president Donald Trump introduced 25% and 10% tariffs on steel and aluminium from most countries, triggering retaliatory tariffs from trading partners including China, India and Canada.