EU-US tariff increase suspended, and welcomed by EBI and partners

In March 2018, the Trump Administration imposed duties of 10% and 25% on aluminium and steel imports into the United States from the EU. Consequently, the EU adopted rebalancing measures in reaction to the US tariffs that included recreational boats and products.

These retaliatory measures were set to double on 1 June 2021, unless an agreement was reached. On 17 May Executive Vice-President Dombrovskis, U.S. Trade Representative Katherine Tai and U.S. Secretary of Commerce Gina Raimondo agreed to enter into discussion on the mutual resolution of the aluminium and steel global excess capacity and they agreed to avoid any changes that would negatively affect trade, thereby postponing the doubling if retaliatory tariffs starting 1 June 2021.

For the recreational boating sector, EBI has worked closely over the last three years with its U.S. and international partners, NMMA and ICOMIA. On the day of the Commission’s decision, the transatlantic alliance issued a joint press release welcoming the agreement and applauding the effort to address these issues by the end of 2021.

On 28 May a Commission Implementing Regulation was published, formalising the EU’s decision on the suspension of the tariff increase. Implementing regulations are directly applicable and do not need to be transposed into national legislation. Their aim is to ensure uniform implementation of European legislation. The Implementing Regulation confirmed that the tariff increase suspension will last for six months, until 30 November 2021. Unless there is a positive outcome of the EU-U.S. negotiations, they would automatically reapply.

EBI will continue to remain active during the EU-U.S. negotiations and report any developments.

Read the full press release by EBI, NMMA and ICOMIA here.

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