Suspension of additional tariffs on products from the US

05/01/22

On Monday 29 November, the European Commission published the implementing Regulation 2021/2083 suspending additional import tariffs on certain U.S. products and suspending the planned increase of additional import tariffs. The import tariffs were imposed as rebalancing measures in reaction to additional import tariffs on EU steel and aluminum.

The import tariffs that were in force are suspended from 1 January 2022 until 31 December 2023 and the planned increase of additional import tariffs is suspended from 1 December 2021 until 31 December 2023.

Background

On 20 June 2018, the European Commission adopted additional import tariffs on certain products originating in the U.S. in response to the tariffs introduced by the U.S. on EU steel and aluminum exports to the U.S.. These rebalancing measures included retaliatory tariffs against U.S. products like perfumes, tobacco products, sport shoes etc..

The increase of EU duties was scheduled to take place in two stages. The EU already suspended the remaining measures that were scheduled to apply as of 1 June 2021. Following the United States’ announcement that the tariffs on EU steel and aluminum products will be removed, Regulation 2021/2083 suspends both existing tariffs and planned additional EU tariffs for two calendar years. The U.S. will replace the existing additional tariffs on EU steel and aluminum products with a tariff-rate quota.

What does this mean for your business?

The EU suspension of the additional import tariffs is to remain in force up to and including 31 December 2023. The suspension of the EU tariffs is a positive development for U.S. companies affected by these tariffs as well as for EU importers of U.S. goods subject to this dispute.

Even though currently it concerns a suspension where the EU and the U.S. will not apply the additional tariffs, it cannot be precluded that these import tariffs would be permanently phased out. As soon as there is more information available, we will come with an update.