The U.S. and the European Union plan to settle the dispute about longstanding steel and aluminum tariffs by November 1.
According to the Capital Press, this move is good news for America’s steel industry, and that indirectly is good news for agriculture. Conversations about Section 232 of the Trade Expansion Act relating to steel and aluminum tariffs have been moving forward.
An EU trade official told Politico that,” Both sides have confirmed readiness to find a solution by November 1,” when the original agreement deadline was December 31.
If the agreement leads to a limitation on the volume of EU steel coming into the U.S. market, that could impact American agricultural manufacturers and farmers.
Because of duties on imported steel under the Trump and Biden administrations, U.S. steel prices in 2021 are at record highs. That’s good for American steel manufacturers but difficult for agricultural equipment manufacturers and farmers.
What happens in the fall conversations could influence the price of steel, although any decision will only be binding on the U.S. and EU, not China or any of the other major steel exporters around the world.