The European Union and the United States have reached a new trade arrangement on steel and aluminum, moving away from the tariff fight that has strained transatlantic relations in recent years. The deal is designed to reduce friction while giving both sides a way to protect key industries.

Under the agreement, the two economies will use a quota-based system aimed at limiting excess imports and addressing global overcapacity in metals markets. Officials say the framework is meant to create a more stable trading relationship while still shielding domestic producers from market distortions.

The move marks a shift from the Trump-era tariffs that disrupted supply chains and triggered retaliation from European partners. By replacing those measures with negotiated limits, Brussels and Washington are seeking a longer-term solution that avoids another escalation.

The deal also reflects broader efforts by the EU and US to coordinate on trade policy amid concerns about unfair competition and industrial overproduction. While details of the quota system will shape its impact, the agreement is being presented as a step toward calmer economic ties between the two allies.