A forthcoming investigation will contribute to negotiations between the U.S., the European Union, and possibly others on sustainable production of steel and aluminum.

Following the U.S.’ lifting of its Section 232 tariffs on a set volume of steel and aluminum products imported from the EU in October 2021, the two sides began negotiating an arrangement to (1) discourage trade in high-carbon steel and aluminum products that contributes to global non-market excess capacity from other countries and (2) ensure that domestic policies support lowering the carbon intensity of these industries. This agreement could ultimately result in new tariffs on imports of steel and aluminum associated with specific, to-be-determined levels of greenhouse gas emissions.

The U.S. and the EU will be the initial members of this arrangement and are hoping to conclude negotiations by this October. “Like-minded economies” will be also be invited to participate.

To help inform these negotiations, U.S. Trade Representative Katherine Tai has requested that the International Trade Commission submit a report by Jan. 28, 2025, that assesses the greenhouse gas emission intensity of steel and aluminum produced in the U.S., whether by firms that are U.S.- or foreign-owned. This report will cover direct emissions from each facility’s owned or controlled sources, indirect emissions from the generation of each facility’s purchased energy, and other indirect emissions that occur in the value chain of the reporting company.

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