LONDON (CU)_The United States and Britain this week decided to end a four-year dispute as the two nations seek to counter China’s growing economic influence in the global market. A statement published by United Kingdom’s Department of International Trade said that an agreement has been reached between London and Washington after two months of talks.
Britain’s International Trade Secretary Anne-Marie Trevelyan met with the US Secretary of Commerce Gina Raimondo on Tuesday (22 March) as Washington announced the removal of section 232 tariffs, thereby reopening tariff free access to the US for British aluminium and steel exporters. Back in March 2018, Former US President Donald Trump’s administration imposed tariffs of 25 per cent on steel and 10 per cent on aluminium under the Section 232 national security law to protect American manufacturers from subsidised imports, and several key trading partners, including the UK, hit selected US products in retaliation. Now with the Trump-era tariffs rolled back, the UK has also agreed to remove its retaliatory tariffs on iconic American goofs like Harley-Davidson motorcycles, Levi Strauss blue jeans, bourbon whiskey and cigarettes.
The agreement, which comes into effect on 1 June 2022, is aimed at allowing the two countries to focus on “China’s unfair trade practices”. Under the deal, Britain can enjoy a duty-free import quota of over 500,000 tonnes of steel melted and poured in the country, while volumes higher than that would be subject to the tariff of 25 per cent.
The pact was hailed by British Prime Minister Boris Johnson who said on Twitter it was “fantastic news and a very welcome boost to our steel and aluminium industries.” According to Minister Trevelyan, it would support the jobs of over 80,000 people across the UK in the steel and aluminium sectors. “Today’s announcement is good news for our steel and aluminium industries who have been unfairly hit by these tariffs, and the 80,000 people employed across the sector. It means our manufacturers can now enjoy a high level of tariff-free access to the US market once again,” the Trade Secretary said. “We have been clear from the start that we would only accept a solution that works for the UK and is in the best interests of both our steel and aluminium industries and this bespoke agreement does just that.”
