The US’ 232 tariffs on European Union members could go away by the end of the year, according to a joint statement released by the two government bodies.

The prospective deal will build on the understanding already reached for large civil aircraft - an aluminium-centric deal.

“We are committed to make this framework work to promote a level playing field, overcome long-standing differences, avoid future litigation, and more effectively address the challenge posed by non-market economies,” the joint statement reads. “We will engage in discussions to allow the resolution of existing differences on measures regarding steel and aluminium before the end of the year.”

Details are scant on what, exactly, a new tariff framework would look like. Retaliatory EU tariffs as a result of the 2018 imposition of the 232 tariffs will definitely be addressed, however.

Any new tariff scheme will also take into account overcapacity - and not necessarily just overcapacity arising from within the US or EU. Additionally, transatlantic tax issues will be addressed.

“We commit to ensure the long-term viability of our steel and aluminium industries, and to address excess capacity,” the statement says. “We are determined to foster a fair, sustainable, and modern international tax system and cooperate to reach a global consensus on the question of taxation of multinational companies through the G20/OECD Inclusive Framework and look forward to reaching an agreement at the July meeting of G20 Finance Ministers and Central Bank Governors.”

The prospect of dropping 232 tariffs on European Union countries and eliminating the region’s retaliatory tariffs is not generating much excitement for US steel players, as all eyes remain on Asian overcapacity.