The European Union will push for lower tariffs on its metals when its top trade negotiator meets this week with U.S. Trade Representative Jamieson Greer at a summit in Malaysia.
The EU struck a midsummer deal with the U.S. that imposes a 15% tariff on most European products entering American markets. But the two sides agreed to try to reduce President Trump’s 50% tariff on steel and aluminum imports.
EU trade negotiator Maros Sefcovic is expected to press Mr. Greer on establishing a quota for metals exports to the U.S., under which steel and aluminum products would be subject to a lower tariff or no levy at all.
“The most logical step would be to proceed with a tariff-rate quota, with low or no tariffs,” Mr. Sefcovic told Bloomberg. “It would be premature to elaborate further because we so far haven’t received the response to this proposal. But we know that it’s very important for our industry and therefore we are permanently putting it on the table.”
The Trump administration wants to spur domestic steel production to push back on foreign producers that undercut the once-iconic American industry.
The governments of other countries subsidize steel production, reducing costs. Those subsidies and other trade barriers allow foreign countries to sell steel to American customers more cheaply than U.S.-made steel.
In 2021, half the world’s top steel companies were state-owned, empowering them to sell their steel at prices below the cost of production. American steel companies would likely go bankrupt if they set prices below the cost of production.
Mr. Trump recently negotiated a deal between Japan’s Nippon Steel and U.S. Steel that gives the U.S. government a “golden share” in the company and sway over its decisions.
U.S. Steel, under pressure from Mr. Trump, said it would continue production at the Granite City Works plant in Illinois.
The Washington Times reached out to the Department of Commerce for comment on the EU’s quota proposal.
Mr. Sefcovic and Mr. Greer are expected to meet at the Association of Southeast Asian Nations ministerial summit in Kuala Lumpur.
Mr. Trump is negotiating trade deals on multiple fronts. He finalized deals with the U.K. and Japan in which those countries would buy more U.S. farm products or invest in American projects to knock down the tariff rate on products they send to U.S. markets.
Mr. Trump is expected to meet with Brazilian President Luiz Inácio Lula da Silva to discuss a path forward on trade. The U.S. administration slapped a 50% tariff on Brazilian products as punishment for Brazil’s prosecution of ex-leader Jair Bolsonaro and online speech regulations.
The U.S. and Brazilian leaders shared kind words in the hallway of the U.N. General Assembly in New York on Tuesday, signaling a thaw in relations.
Mr. Trump also delivered a recent birthday call to Indian Prime Minister Narendra Modi as the two try to repair their relationship. Mr. Trump imposed a 50% tariff on India as punishment for its purchasing Russian oil amid Moscow’s invasion of Ukraine.
The warmer relations could pave the way to a trade deal, with some Indian officials signaling they are willing to buy more U.S. energy.
Elsewhere, U.S. Ambassador to China David Perdue said Beijing is considering a massive order of Boeing aircraft as the two world’s largest economies hash out deep differences on trade.
“This is a huge order, and it’s very important to the president. Very important for Boeing. I think it’s very important to China,” Mr. Perdue said Tuesday at a briefing.
It is unclear whether it would lead to a breakthrough. China is playing hardball on U.S. agricultural products, leading to pain for American farmers.
China has refused to buy American soybeans amid trade tensions, a huge blow to farmers who rely on the Asian superpower as a key market.
China delivered another setback to U.S. farmers by purchasing multiple cargoes of soybeans from Argentina, after the South American country suspended certain export taxes to stimulate its struggling economy.
• Jeff Mordock contributed to this report.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.