USTR Tai says she is optimistic of resolving EU metal tariff dispute

BRUSSELS (Reuters) - U.S. Trade Representative Katherine Tai said on Thursday she was optimistic of resolving a dispute with the European Union over steel and aluminium tariffs, insisting that the solution also required a joint effort to combat overcapacity.

Former U.S. President Donald Trump imposed tariffs of 25% on steel and 10% on aluminium from the European Union, along with other economies such as China, India, Russia and Switzerland.

The European Commission, which oversees EU trade policy, has agreed to suspend a planned increase in retaliatory duties until Dec. 1 and to launch formal talks on addressing excess global capacity largely centred in China.

"The conversations are intensive," Tai told a briefing of reporters on Thursday after talks with European Commission vice-president Valdis Dombrovskis. "Let's say I'm optimistic."

(Reporting by Philip Blenkinsop; editing by Diane Craft)