Europe and US extend trade truce over import tariffs

The European Union and the US have agreed to pause an ongoing trade war until after the US presidential election in 2024.

US tariffs on aluminium and steel will be suspended until the end of March 2025. This extends to American-made recreational boats and engines entering the EU. In return, the EU’s retaliatory tariffs on items including whisky, foodstuffs and motorbikes have also been suspended.

These tariffs – initially over steel and aluminium – were originally introduced during a trade war between Donald Trump’s United States and the European Union.

A moratorium on the taxes was initially agreed upon in 2021 during the pandemic. This moratorium was due to expire on 1 January 2024 unless the parties agreed otherwise.

The prospect of the trade war starting again had been a growing cause for concern for boating industry associations. 

Earlier this month, 87 trade associations representing various sectors cosigned a statement urging US and EU leaders to reach an agreement to permanently remove all retaliatory tariffs on products unrelated to these disputes.

The European Boating Industry (EBI), which represents the recreational boating industry in Europe, has been active in advocating on the issue towards the EU and US sides along with EBI, together with NMMA and ICOMIA.

EBI has reacted to the decision by the European Commission, calling it a ‘noteworthy development’ in the ongoing trade relations between the European Union and the United States.

‘The extension provides further temporary relief, and EBI acknowledges the efforts made to address the complexities of the trade dispute,’ the EBI statement from Tuesday (19 December 2023) reads. ‘It offers good news to European importers and distributors of US boats, as well as the entire value chain in Europe and the US.

The statement continues: ‘EBI is grateful to the European Commission for its constructive engagement with the sector and today’s decision. While recognising the positive step, EBI emphasises the importance of achieving a permanent resolution to fully eliminate retaliatory tariffs and foster a stable and mutually beneficial trade environment.

‘EBI encourages both sides to continue their dialogue with the goal of reaching a comprehensive agreement that will benefit industries on both sides of the Atlantic.’

The US metal industry provides jobs in places such as Pennsylvania and Ohio – both states that could prove crucial to President Biden in the election in November 2024.