The Biden administration said Tuesday it would roll back Trump-era tariffs on British steel and aluminum to resolve a transatlantic trade dispute that had worsened relations with a key ally.
Under the agreement, the United States will allow a certain volume of metals to be imported from the United Kingdom duty-free from June 1. and other products, removing barriers imposed on U.S. exports during the Trump administration’s trade wars.
The announcement, which came at the end of two days of trade talks between British and US officials, removed some of the last remaining vestiges of the transatlantic trade disputes of recent years.
The European Union — which includes the United Kingdom until 2020 — imposed tariffs on U.S. products in retaliation for the tariffs former President Donald J. Trump placed on foreign steel and aluminum in 2018. After Brexit, the United Kingdom maintained many of those levies. tariffs on US goods.
Officials from the Biden administration, most notably Katherine Tai, the United States Trade Representative, and Gina Raimondo, the Secretary of Commerce, have worked over the past year to remove many of those barriers, believing that the United States will energy should focus on countering economic rivals, not fighting with allies.
During two days of meetings in Baltimore that launched a new trade dialogue, US and UK officials pledged to develop policies that would deepen their partnership and benefit workers and the environment. Officials also said they would continue to work together on measures to punish Russia’s President Vladimir V. Putin for that country’s invasion of Ukraine.
Under the agreement, British steel and aluminum imported into the United States must be completely melted and cast in the United Kingdom to avoid tariffs, to prevent cheap steel from China and other countries from finding a back door in the American market. . In addition, any British steel company owned by a Chinese entity must audit their financial records to assess the Chinese government’s influence and share those results with the United States, the Biden administration said.
US and UK officials also said semi-finished products containing aluminum from China, Russia or Belarus will not be allowed to enter the United States duty-free.
Restrictions still apply: if shipments of steel and aluminum from Britain exceed certain levels, they will be taxed at the existing rates of 25 percent on steel and 10 percent on aluminum.
As part of the agreement, the United States and Britain will also continue to grant “market-distorting influence or ownership” in the steel and aluminum industries.
The United States said it would soon send a trade delegation to Britain for further talks.
The deal delivers on President Biden’s vision to restore relations with our allies while ensuring the long-term viability of our steel and aluminum industries, the communities they support, and most importantly, workers in these industries on both sides of the world. the world. Atlantic,” Ms. Tai said in a statement.
Thomas M. Conway, the international president of United Steelworkers, said the union supported the agreement and that it was “an important step in addressing systemic problems such as illegal dumping and global overcapacity that are affecting the vitality and future of our steel and aluminum industries.” to threaten.”
Chris Swonger, the chief executive of the Distilled Spirits Council, said American distillers “applaud the end of this long-tariff nightmare.” According to the group, U.S. whiskey exports to Britain had fallen 42 percent since the tariffs were imposed in 2018.
“With the elimination of the UK’s grueling retaliatory tariffs on US whiskey exports, US distillers are poised to stoke the stills,” he added.
The two countries have said they do not intend to conclude negotiations on a free trade agreement begun during the Trump administration. British leaders had hailed the potential deal as an independent step for their economies after leaving the European Union and urged the Biden administration to begin negotiations.
But the Biden administration has shown little interest in adopting the Trump administration’s goals, saying instead that the trade dialogue with the United Kingdom should “examine mutual international trade priorities rooted in our shared values, while also promoting innovation.” and promote inclusive economic growth”.
The upcoming dialogue will cover issues such as trade and investment involving small businesses, the digital economy, sustainable supply chains and the protection of labor rights and the environment, the Biden administration said.
