US Rolls Back UK Steel Tarriffs

The United States and Britain ended a four-year dispute over U.S. steel and aluminum tariffs on Tuesday, resolving an issue that had strained relations between the allies.

The two countries pledged to work together to counter China in a deal that also removes retaliatory tariffs from U.S. motorcycles, whiskey, and other products.

In a joint statement, U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai said the deal would protect steel and aluminum companies and their workers in the two countries.

The statement also said the deal would allow the allies to focus on what they say are “China’s unfair trade practices.”

Under the agreement, the U.S. would replace the 25% tariffs on steel with a quota system, allowing U.K. metal imports into the U.S. duty-free until it reached the quota.

The deal had removed a “very frustrating irritant,” and is “good news for the steel and aluminum sectors, which support the jobs of over 80,000 people across the UK,” International Trade Secretary Anne-Marie Trevelyan said.

“Hopefully, we can now move forward and focus on deepening our thriving trading relationship with the U.S.,” Trevelyan added.

U.S. officials also welcomed the suspension of the U.K. retaliatory tariffs, which they said affected about $500m worth in annual trade.

The two countries traded more than $260bn worth of goods last year, the majority were U.S. exports such as metals, aircraft parts, oil, and gas.

The deal would take effect from the beginning of June 2022.


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