US dangles steel concessions ahead of key EU votes

BRUSSELS — The Trump administration has reassured the EU’s top trade lawmaker that it plans to shorten a list of items containing steel that are subject to high U.S. tariffs, in a concession that could finally persuade the European Parliament to back last year’s transatlantic trade deal. 

The offer came in a call between U.S. Trade Representative Jamieson Greer with Bernd Lange, the chair of the European Parliament’s Trade Committee. It has helped win the support of Lange’s fellow socialists, enabling a key committee vote to go ahead on Thursday.

But the fix is not yet fully in, with caucus leaders still to debate exactly when to schedule a final plenary vote on the accord reached at President Donald Trump’s Turnberry golf club in Scotland last July.

One sticking point has been the subsequent addition by Washington of hundreds of items that contain steel — from cranes to furniture — to a list of products subject to a 50 percent U.S. tariff. That, in the view of the Europeans, violates the spirit of the Turnberry accord. 

In their call last Saturday, Greer assured Lange that many of these items would go, said the German MEP, who is also steering the enabling legislation on the deal. 

“Not everything, but a lot of them,” Lange told POLITICO’s Morning Trade newsletter, saying that there was “some movement” on that front.

The enabling legislation, which would remove tariffs on U.S. industrial goods, has been stalled for weeks in the EU chamber, as lawmakers balked at approving a deal following the U.S. Supreme Court’s decision last month to strike down President Donald Trump’s original tariffs.

The Turnberry deal had set an “all-inclusive” tariff of 15 percent on most goods. Trump quickly replaced that with a temporary 10 percent global duty.

With Trump’s threats to annex Greenland, cut off all trade with Spain, and his military campaign against Iran further undermining any vestigial confidence on the part of EU lawmakers that he will abide by his commitments, the path to final approval of the Turnberry accord is both rocky and narrow.

Not the end of the road 

The next hurdle is holding a final plenary vote on the Turnberry deal, with political groups in the European Parliament still divided. 

Lange’s Socialists & Democrats, the Left, Greens and Renew are in favor of scheduling it in April, arguing they still require clarity from Washington. The center-right, pro-business European People’s Party (EPP) is pushing to hold it next week, as currently scheduled. 

A decision is expected this week. Political group chairs representing a majority of MEPs would be needed to change the plenary agenda.

“We need to finish this in March because then we would have much more certainty for everything. We have promises from the White House on steel and aluminum derivatives,” said Željana Zovko, the EPP top negotiator on the file.

Lange is meanwhile due to fly — after the Trade Committee vote on Thursday — to Washington and is expected to meet with Greer. 

Only after the text is approved by the plenary can the European Parliament enter negotiations with EU capitals and the European Commission on a compromise to finally implement the deal.

Beyond EU 

People close to the White House say officials have spent weeks exploring ways to streamline how the U.S. steel tariffs apply to downstream products that hit the EU and other trading partners, following industry pushback after the list of steel and aluminum derivatives expanded to cover hundreds of items last year. 

The exchange between Greer and Lange marks the clearest signal yet that the administration may adjust its approach to derivatives tariffs — changes that could extend well beyond the EU. 

But the Trump administration has not publicly confirmed any changes, or clarified what that plan would entail. 

“We are always examining ways to ensure our sectoral tariffs are most effectively safeguarding our country’s national and economic security, but unless announced by the Administration, discussion about tariff or derivative adjustments is baseless speculation,” said a White House official. 

Camille Gijs reported from Brussels and Ari Hawkins reported from Washington. Max Griera contributed to this report.