U.S., EU weighing tariffs on Chinese steel, aluminum

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U.S., EU weighing tariffs on Chinese steel, aluminum

According to people familiar with the matter, the U.S. and the European Union are weighing new tariffs on Chinese steel and aluminum as part of a bid to fight carbon emissions.

China, which produces more than half of the world's steel, is accused by the EU and the United States of creating overcapacity that is threatening the survival of their own steel industries.

The idea floated within President Joe Biden's administration isn't officially proposed yet, the report said. An agreement with the EU won't be reached until late next year at the earliest.

The new framework, which is somewhat similar to the agreement between the EU and the United States last year, aims at China, along with other large polluting nations, according to the Bloomberg report.

The report said that the framework was presented by U.S. Trade Representative Katherine Tai and her team to European Commissioner Valdis Dombrovskis and others in Prague in late October.

The report said that EU officials had raised the issue of legality and compatibility with World Trade Organization rules, as well as the bloc's internal carbon pricing mechanism.

The United States Trade Representative and a spokesman for the European Council for trade and development did not respond to requests for comment.