On the sidelines of the Group of 20 Summit this past weekend, European Union officials and the Biden administration brokered a deal that will ease tariffs on E.U. steel and aluminum imports into the U.S. while eliminating retaliatory duties from the E.U. on several U.S. goods, including U.S. Corn.
“This is an important step for America’s corn farmers and a step toward restoring our trading relationship with the European Union,” said NCGA President Chris Edgington. “We were dragged into a trade dispute that did not involve us, and we are highly appreciative of the Biden administration for this development.”
In May of this year, the Biden administration announced the start of discussions with the E.U. to address global steel and aluminum excess capacity, which originally prompted the U.S. to apply tariffs on European steel and aluminum imports under the authority of Section 232. This action was met by the E.U. imposing retaliatory tariffs on U.S. imports, including a 25% tariff on U.S. corn. Under the new deal, the U.S. agreed to provide a duty-free quota for European steel and aluminum while keeping the Section 232 tariffs in place for any steel or aluminum shipped in excess of the quota, maintaining a minimum level of protection for American-made steel and aluminum.
“As farmers, we feed and fuel the world,” said Edgington. “When our crops are used as a bargaining chip, everyone loses.”
More details on the agreement can be found on USTR’s factsheet here.