WASHINGTON (Reuters) - U.S. Trade Representative Katherine Tai said she is working hard to resolve a dispute with European Union over U.S. steel and aluminum tariffs and EU retaliation, but any solution will need to address the problem of global excess production capacity for the metals, largely centered in China. Tai, speaking to a U.S. Senate Appropriations subcommittee, said the Section 232 tariffs imposed by former president Donald Trump have had a positive impact on U.S. steel production, but have had costs in terms of retaliatory tariffs. “Solutions that we come to with our trading partners, I believe in my core, really have to address the larger issue around the overcapacity in the market,” Tai said.