In a move aimed at managing ongoing trade tensions, the European Commission has adopted Commission Implementing Regulation (EU) 2025/664, which extends the suspension of additional tariffs on certain U.S. products until April 14, 2025. This decision amends Implementing Regulation (EU) 2023/2882, which had previously suspended these tariffs until March 31, 2025.
Background on EU-U.S. Trade Tariffs
The European Union initially imposed additional customs duties on specific U.S. imports through Implementing Regulations (EU) 2018/886 and (EU) 2020/502. These countermeasures were a response to the United States’ application of safeguard duties on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962. The U.S. tariffs, introduced in June 2018 and expanded in February 2020, imposed duties of 25% on steel and 10% on aluminum imported from the EU.
To ease trade tensions, the EU suspended its retaliatory tariffs in December 2023 via Implementing Regulation (EU) 2023/2882, setting an expiration date of March 31, 2025. However, the U.S. reinstated its safeguard measures on February 10, 2025, bringing back the 25% and 10% tariffs effective March 12, 2025.
Why the EU Extended the Suspension
With the reintroduction of U.S. tariffs, the EU is adjusting its strategy. Rather than immediately reinstating countermeasures, the European Commission has opted to extend the suspension for a short additional period until April 14, 2025. This provides a crucial window for continued negotiations with the United States.
The Commission aims to use this time to explore possible resolutions to the ongoing tariff dispute and to ensure that EU retaliatory measures are aligned with international trade rules, particularly under GATT 1994. This approach also supports ongoing EU-U.S. trade discussions aimed at fostering a more balanced and cooperative economic relationship.
Key Changes Introduced by Implementing Regulation (EU) 2025/664
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Extension of Tariff Suspension: The deadline for the suspension of additional EU tariffs on U.S. products has been extended from March 31, 2025, to April 14, 2025.
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Temporary Delay in Retaliatory Measures: The EU maintains its stance that U.S. safeguard measures violate World Trade Organization (WTO) rules, but the delay allows for further diplomatic engagement before countermeasures take effect.
Implications for EU-U.S. Trade Relations
The short-term extension signals the EU’s willingness to negotiate a long-term solution rather than escalating trade tensions. However, if no resolution is reached by April 14, 2025, the EU may proceed with reinstating retaliatory tariffs. Businesses on both sides of the Atlantic should stay informed about upcoming developments, as trade policy decisions in the coming weeks will significantly impact transatlantic commerce.
The adoption of Commission Implementing Regulation (EU) 2025/664 reflects the EU’s strategic approach to international trade disputes. By extending the suspension period, the EU is creating space for further diplomatic efforts while keeping its legal and trade options open. Companies involved in steel, aluminum, and related industries should monitor these developments closely, as any changes in EU-U.S. tariff policies could affect supply chains, pricing, and market access.
