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US to drop UK steel and aluminum tariffs

, March 25, 2022, 0 Comments

The two nations have agreed to end a trade dispute. The tariffs were imposed by former US President Donald Trump on national security grounds.

uk-steel-us-marketexpress-inThe United States announced on Tuesday it would drop Trump-era aluminum and steel tariffs on the United Kingdom, while the latter will drop retaliatory tariffs on US products.

The two nations will now work together to address market overcapacities from non-market economies such as China, according to a joint statement from US Commerce Secretary Gina Raimondo and US Trade Representative Katherine Tai.

The statement said the new arrangement would allow historically based and sustainable volumes of UK steel and aluminum products into the US market without the application of Section 232 tariffs.

The deal sets smelt and cast requirements on aluminum, as well as requiring any China-owned UK steel entities to audit financial records to assess any influence of the Chinese government and share the results with the United States.

UK drops alcohol tariffs

Under the deal, the UK will also drop retaliatory tariffs that were imposed on $500 million (€435 million) of American imports, including alcohol and consumer goods.

The US sanctions were originally imposed in 2018 by then US President Donald Trump on the grounds of national security.

“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,” Raimondo said in a statement. “And by removing the UK’s retaliatory tariffs, we reopen the British market to beloved American products.”

US President Joe Biden has been undertaking several efforts to settle trade disputes with American allies, some from the Trump administration, and some longer-standing.

The latest agreement comes after two days of trade talks between Trade Representative Tai and British International Trade Secretary Anne-Marie Trevelyan in Baltimore.