- The US and Europe reach a deal to end tariffs and give the industry a breather
- Tariffs on steel and aluminium were imposed by former President Trump
- Europe had levied retaliatory tariffs on US goods like bourbon whiskey
Gina Raimondo, the US Secretary of Commerce, has announced an end to Donald Trump’s steel and aluminium tariffs levied on Europe since 2018.
This comes as a major relief for the European manufacturers, and also for the US industry that was bracing for retaliatory tariffs from Europe. Under ‘Section 232’, a 25 per cent tariff was levied on steel, and 10 per cent on aluminium on European exporters. Only ‘limited volume’ of these metals was allowed to arrive without imposition of duty in the US.
EU welcomes the deal
On Twitter, the European Commissioner for Trade, Valdis Dombrovskis, welcomed the decision. It is being said that a formal announcement of the agreement is likely be made soon by the US President, Joe Biden, and the European Commission President. As of now, the exact volume of the metals that will be exported to the US duty-free under this new deal has not been declared.
Deal to deal with China
A few conditions will be in place in the new deal. Under these, the metals that are melted and poured in the EU only will qualify for duty-free arrival in the US. This condition checks any Chinese and other non-EU countries produced steel and aluminium to qualify for duty-free export. Some exporters only undertake minimal processing of the two metals in Europe after importing them from major steel and aluminium producer China.
China has long remained a big threat in the two industries owing to its excessive production and export of the two metals under the patronage of the communist government. As a part of the new deal, the tariffs imposed by the Europe on Harley-Davidson motorcycles, bourbon whiskey and motor boats are set to go.
All this comes at a time when the prices of metals have grown multi-fold over the past one year. The deal is expected to boost the industries of both the US and Europe.