The United States and the European Union have agreed to remove punitive tariffs.

0

The United States and the European Union have agreed to remove punitive tariffs.

The United States and the European Union agreed on Saturday to withdraw punishing tariffs on imported European steel and aluminum, putting an end to a trade war that began three years ago when then-President Donald Trump slapped the tariffs.

US Commerce Secretary Gina Raimondo announced the agreement, saying it “allows limited volumes of EU steel and aluminum to enter the US tariff-free.”

Raimondo said from Rome, where she was attending the G20 conference, that increased EU retaliatory measures on famous American exports like Harley-Davidson motorbikes, Levi’s blue jeans, and Kentucky bourbon, which were set to take effect on December 1, will not be implemented.

“We have agreed with the US to halt our steel and aluminum… trade dispute and initiate cooperation on a Global Arrangement on Sustainable Steel and Aluminum,” EU trade commissioner Valdis Dombrovskis said in a tweet.

In June 2018, Trump slapped 25% tariffs on steel and 10% tariffs on aluminum imports from a number of countries, including the European Union. He claimed he was acting in the interest of national security.

The Europeans retaliated fast, imposing tariffs on American tobacco, corn, rice, and orange juice, as well as motorbikes and bourbon.

The US and the European Union gave themselves until December 1 to address the steel tariff issue, when they struck a deal to terminate their dispute over subsidies to Airbus and Boeing in June.

“These industries were suffering 50 percent retaliatory tariffs,” Raimondo said of Harley Davidson and other motorcycle manufacturers. “No business is going to be able to endure that.” The distilled spirits sector employs 1.7 million people in the United States. At Harley Davidson, there are 5,600 production employees, and all of their jobs are now safer as a result of this agreement.” The agreement, which was unveiled on the first day of the G20 conference in Rome, does not define the amount of duty-free European steel and aluminum that will be allowed in the US.

“We hope that as we eliminate the 25% tariffs and boost volume, this agreement will provide some supply chain relief and help bring down some of those cost hikes,” Raimondo said, referring to pandemic-related disruptions in manufacture and distribution of crucial products.

According to Raimondo, the agreement stipulates that any steel shipped from Europe to the United States must be made wholly in Europe.

She also stated that the agreement establishes a framework under which the US and EU will consider carbon intensity in future negotiations.

“What this means is that both the United States and the European Union produce steel and aluminum.” The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.

Share.

Comments are closed.