The U.S. and the EU have announced a settlement regarding the U.S. Section 232 duties on European steel and aluminum products. As part of that settlement, the U.S. Department of Commerce (Commerce) announced that the 25 percent tariff on imports of steel and 10 percent tariff on imports of aluminum products from the EU will be replaced with a tariff-rate quota (TRQ) system. In return, the EU will suspend the 25 percent retaliatory tariffs on certain U.S. goods (e.g., bourbon, motorcycles and recreational boats, among other products) in response to the initial Section 232 measures. Both parties will also suspend the disputes they initiated before the World Trade Organization in relation to these measures. The U.S. and EU have also agreed to launch a global arrangement focused on addressing excess capacity and carbon objectives. The U.S. TRQ will become effective on January 1, 2022, and the EU’s retaliatory tariffs will be removed on the same day.