ROME, ITALY — US and EU negotiators have reached a deal that lifts the 25% retaliatory tariffs on US products, including milled and broken rice, USA Rice said.
This May, the Biden administration said it intended to negotiate with the EU to remove tariffs placed on US imports in retaliation for the US tariffs on European steel and aluminum. The United States agreed to provide a duty-free quota for European steel and aluminum while keeping tariffs in place for any steel or aluminum in excess of the quota.
The announcement came just two days before an internal Nov. 1 deadline that gives a one-month period for the European Commission to formally repeal the tariffs by Dec. 1, when some EU retaliatory duties were set to double.
“We are thrilled with this news,” said Mark Holt, Arkansas rice miller and chair of the USA Rice Subcommittees that oversee Europe, Africa, and Middle East trade policy and promotions. “Since the onset of Brexit and the tense trade relationship over the 232 tariffs started, our milled rice exports to Europe have suffered, but we hope this is a sign that things are turning around. In short crop years like we’re in, prices tend to be higher and that extra 25% tariff really makes it difficult to be competitive. Let’s hope a similar announcement on the UK soon follows.”
Like the EU, the United Kingdom (UK) also has tariffs in place on US milled and broken rice in response to the US steel and aluminum tariffs. The UK is in the process of reassessing the US products subject to the retaliation and has proposed removal of rice from that list. Timing for the UK to announce the new retaliation list is still unknown.