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1) The United States plans to extend its suspension of tariffs on European union (EU) steel and aluminum if more time is needed to address issues related to overcapacity and low-carbon production, according to the US ambassador to the EU, Mark Gitenstein. These tariffs, initially proposed by former President Donald Trump, were replaced with a tariff rate quote (TRQ) system in January 2022. Under the TRQ system, up to 3.3 million metric tons of EU steel and 385,000 tons of aluminum can be imported into the US tariff-free, based on past trade levels. The US has expressed its intention to roll over these TRQs at the beginning of the year if further negotiation time is required. The negotiations are aimed to address excess metal production capacity, particularly in non-market economies like China, and promote environmentally friendly steel production. Despite recent discussions, no agreements were reached on these issues. Both the US and the EU have made significant progress in talks over the past two years and remain committed to finding solutions in the coming months. Additionally, the parties are exploring agreements related to electric vehicles using specific minerals processed in the EU, allowing them to qualify for US tax breaks, with discussions set to continue.
2) The Australian government has announced a $2 billion investment to boost mining and processing of critical minerals, essential for clean energy technology and vital to global climate golas. Prime Minister Anthony Albanese state that htis funding would aid the transition to a decaronized economy and attract investment from American companies seeking access to Australia's rich resource deposits. The move aims to reduce reliance on China, which has traditionally dominated the production of these valuable minerals. The funding represents a doubling of funds for low-inteest loans for miners and processors of critical minerals, including cobalt, lithium, manganese, and rare earths. These minerals are integral to batteries, wind turbines, solar panels, electric vehicles, defense technology and mobile phones. Australia and the US have made the climate and clean energy a key aspect of their alliance, emphasizing collaboration on critical minerals. The funding plan was revealed ahead of the first roundtable meeting of the Australia-United States Taskforce on Critical Minerals in Washington, attended by industry leaders and government officials from both countries. Additionally, during his visit to the US, Prime Minister Albanese is expected to announce further agreements on artificial intelligence, infrastructure in the Pacific Islands, trilateral cooperation with Japan, and space exploration. Discussions will also focus on the AUKUS security pact, which involves supplying Australia with American nuclear-powered submarines, although some challenges remain in Congress regarding the required legislation for the pact.