The United States and the European Union on Sunday ended a dispute over steel and aluminium tariffs and said they would work on a global arrangement on steel and aluminium to combat “dirty” production and overcapacity in the industry.

Following are some key details about the deal:

  • The United States will not apply Section 232 duties imposed by former president Donald Trump and will allow duty-free importation of steel and aluminium from the EU at a historical-based volume.
  • The EU will suspend tariffs on U.S. products like whiskey, power boats and Harley-Davidson (HOG.N) motorcycles, imposed in retaliation for the steel and aluminium tariffs.
  • The EU and the United States will negotiate what they call the world’s first carbon-based sectoral arrangement on steel and aluminum trade by 2024, with their arrangement aiming to address carbon intensity and global overcapacity.
  • The two sides said they will work to restrict access to their markets for “dirty steel” and limit access to “countries that dump steel” in their markets, both of which contribute to worldwide oversupply.
  • The United States also published a consultation that brought on board what it called “like-minded nations” like Japan and Britain on issues related to steel and aluminum, with a focus on the impacts of overcapacity on the global steel and aluminum markets.