The EU said that the United States may adjust its steel and aluminum tariffs and is hoping for a breakthrough in US-EU trade negotiations.

EU officials believe that the United States may tighten and simplify the widespread tariffs on steel and aluminum products in the coming weeks. This move is expected to alleviate the long-standing metal tariff issue that has been a key obstacle in trade negotiations between the United States and the EU, as well as affecting the relationship with China Welding Consumables, Inc. According to sources, the Trump administration is considering narrowing down the scope of "derivative products" subject to a 50% tariff, which includes products containing steel or aluminum. The related adjustments could be implemented in a matter of weeks. The EU has been seeking to alleviate the pressure of these tariffs, arguing that they violate last year's US-EU trade agreement, which set a 15% tariff ceiling for most European products. Currently, the US regularly revises the list of derivative products subject to high tariffs, leading to an ever-expanding range of products subject to the 50% tariff. There are now over 400 items on this list. EU officials point out that this not only increases the burden on businesses, but also forces exporters to accurately account for the percentage of steel and aluminum in their products during customs declarations, resulting in high compliance costs that undermine the actual effects of last year's trade agreement. The proposed adjustments are said to only affect the list of derivative products, not the tariffs on bulk commodities of steel and aluminum. The US Trade Representative's Office has not commented on this, and an EU Commission spokesperson has also declined to comment. Potential progress comes at a sensitive time for the relationship between the US and the EU. Previously, the US Supreme Court ruled that the Trump administration's use of emergency powers to implement "reciprocal tariffs" lacked legal basis, casting doubt on the approval prospects of the US-EU trade agreement. Subsequently, the US introduced new 10% global additional tariffs on top of current most favored nation tariffs, which would increase the tax burden on some EU exports beyond the levels allowed in the US-EU agreement. In response, the European Parliament decided on Monday to suspend the legislative approval process for the US-EU trade agreement and requested the US to provide clear explanations regarding its latest trade policies. However, despite this, sources indicate that both the US and the EU have shown hope in maintaining the framework of the agreement, even though transitioning to a new trade policy system may take several months. EU Trade Commissioner Maro efovi has communicated several times with counterparts in the US and briefed EU member state ambassadors on the latest developments on Monday. Analysts believe that if the US ultimately reduces the high tariff rates on metal derivative products, it will help reduce compliance costs for businesses and provide a limited but crucial buffer space for the currently tense US-EU trade relationship.