Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 108

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 108
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 steel with a tariff-rate quota ("TRQ") consistent with pre-Section 232 trade volumes in return for the EU dropping the threat of retaliatory tariffs. The total annual import volume under the TRQ is set at 3.3 million tonnes allocated by product category and on an EU member state basis . Only steel “melted and poured” in the EU is eligible for duty-free treatment. Imports abov e the TRQ volumes will continue to be subject to the 25% tariff. An additional 1.1 million tonnes of products previously excluded from Section 232 tariffs are also allowed to continue duty-free. Subsequently, the U.S. reached similar agreements with Japan and the UK, also replacing the 25% S ection 232 tariffs with tariff-rate quotas. Those agreements took effect on April 1, 2022 (Japan) and June 1, 2022 (UK). In May 2022, the U.S. suspended Section 232 tariffs on imports of steel from Ukraine. In May 2023, the suspension was extended for an additional year and expanded to include steel products from Ukraine further processed in the EU. In May 2024, the suspension and expansion were extended until June 1, 2025. In February 2025, the U.S. administration announced that it would reinstate 25% tariffs on all steel and aluminum imports under Section 232, revoking previously negotiated country- specific exemptions and quota arrangements from March 12, 2025 (including those described above). The 2018 Section 232 tariffs triggered concerns of trade deflection worldwide and several countries initiated domestic remediation measures. On February 2, 2019, the EU Commission imposed definitive safeguard measures based on global tariff quotas with a 100% quota based on average imports over the past three years prior to 2018 and covering 26 steel product categories . Imports that exceeded the above quotas would face a 25% tariff but certain 'developing' countries were exempt when their respective import shares were below 3%. The measures set country-based quotas for larger importers on all product categories, except for hot rolled (global), and quarterly quota calculations for residual volumes of all products. They also included annual quota relaxations, adaptable to market conditions. Countries subject to quotas have an incentive to front-load the consumption of their national quota in order to benefit from the residual quotas in the final quarter of the period, thus ensuring full quota consumption. In 2021, the EU Commission carried out