The US and the UK reached a deal to end steel and aluminum tariffs on imports imposed by ex-President Trump.
“By allowing for a flow of duty-free steel and aluminum from the UK, we further ease the gap between supply and demand for these products in the United States,” Commerce Secretary Gina Raimondo said in a statement.
“And by removing the UK’s retaliatory tariffs, we reopen the British market to beloved American products.”
The agreement was the latest in a series of efforts by President Biden to resolve trade disputes with US partners. Some of which had been ongoing for some time and others that had begun during the Trump administration.
Fantastic News
The news of the arrangement “with our American friends” was applauded by British Prime Minister Boris Johnson.
“This is fantastic news and a very welcome boost to our steel and aluminum industries,” he said on Twitter.
In January, Washington and London announced the start of talks to resolve the dispute. It began in 2018 when Trump placed tariffs of 25% on steel imports and 10% on aluminum imports from the UK and other countries. The reason was to safeguard the US industry.
For years, US businesses have struggled to compete with China’s surplus of supplies. But Trump has penalized close trade partners, citing national security concerns, deteriorating relations with key US allies.
In October, the Biden administration achieved an agreement with the European Union to abolish tariffs. In early February, it did the same with Japan.
Tarrifs
According to the statement, Britain will lift retaliatory tariffs on $500 million in American imports. Thereby, including alcohol and consumer products, as part of the deal announced Tuesday.
It also requires any British steel business “owned by a Chinese entity must undertake an audit of their financial records to assess influence from the People’s Republic of China government,” with the results being shared with the US, according to the Commerce Department.
The settlement was “good news for our steel and aluminum industries who have been unfairly hit by these tariffs, and the 80,000 people employed across the sector”, said Anne-Marie Trevelyan. She is Britain’s International Trade Secretary, who met with Raimondo in Washington to seal the arrangement.
Industry in the United States was more hesitant in its appreciation, pointing out the benefits of the tariffs for aluminum and steel producers.
“The Russian invasion of Ukraine should remind us all just how critical the domestic steel industry is to our national and economic security,” said Scott Paul. He is the president of the Alliance for American Manufacturing.
“Section 232 quotas and tariffs have permitted the American steel industry to recover, invest, hire, and contribute robustly to our national defense,” he said. Thereby, calling for a pause in more such deals to allow the industry to adjust.
Trade Pact
The declaration came after two days of talks on the broader trade partnership. It was between US Trade Representative Katherine Tai and Trevelyan in the port city of Baltimore.
Tai stated in a statement that the deal to remove the metal tariffs “delivers on President Biden’s vision to repair relationships with our allies while also helping to ensure the long-term viability of our steel and aluminum industries.”
Trevalyan and Tai stated that they would continue their discussions in Scotland next month.
“Hopefully we can now move forward and focus on deepening our thriving trading relationship with the US,” the British official said.
However, there was little sign of progress toward a free trade agreement between the two countries. It has been a goal for Britain since its exit from the EU.
A trade pact is not likely “at least not anytime soon.” according to Marjorie Chorlins. He is the senior vice president for European Affairs at the US Chamber of Commerce. He likewise participated in meetings in Baltimore on Monday.
Officials in Trump’s administration also appeared ready to make a new bilateral agreement with London and had already begun negotiations. But the Biden administration has shown little interest in doing so.