According to an official statement from the Office of the U.S. Trade Representative, the Section 232 tariffs on EU steel and aluminum will be replaced with a tariff-rate quota (TRQ) system. The TRQ will allow certain "historically based" volumes of EU metal products into the U.S. duty free. In response, the EU have agreed to lift its retaliatory tariffs on U.S. goods and both sides will rescind their trade disputes with the World Trade Organization.

The new agreement opens the door to further negotiation and coordination between the EU and the U.S. to address global steel overcapacity and industry decarbonization, according to the statement.

In response to the announcement, American Iron and Steel Institute president and chief executive Kevin Dempsey said, “We thank Secretary Raimondo and Ambassador Tai for their efforts to ensure that, as the United States works to develop a renewed partnership with the EU to address global steel excess capacity, a tariff-rate quota (TRQ) will be maintained under Section 232 to prevent another steel import surge that would undermine our industry and destroy good-paying American jobs. …We hope that with the conclusion of this agreement, the United States and the EU will now work on a common action plan for challenging non-market industrial policies and other government interventions that fuel overcapacity in steel.”