US and UK settle dispute over steel and aluminium tariffs
- The United States and Britain mend rift that dates back to the Trump administration
- US says deal allows both countries to focus on ‘China’s unfair trade practices’
The United States and Britain ended a four-year dispute over US steel and aluminium tariffs, pledging to work together to counter China in a deal that also removes retaliatory tariffs from US motorcycles, whiskey and other products.
In a joint statement on Tuesday, US Commerce Secretary Gina Raimondo and US Trade Representative Katherine Tai said the deal would protect steel and aluminium companies – and their workers – in both countries, allowing the allies to focus on what they say are “China’s unfair trade practices”.
The would also help ease inflation in the United States, where consumer prices have hit their highest level in 40 years, Raimondo said.
Under the deal, Britain will receive a duty-free import quota of over 500,000 tonnes of steel “melted and poured” in the country annually. It also sets smelt and cast requirements on aluminium.
The agreement requires any UK steel company owned by a Chinese entity to audit their financial records to assess influence from the People’s Republic of China government, and then share them with the United States, the statement said. The requirement will initially apply to British Steel, acquired by China’s Jingye Group, in 2020.
British Prime Minister Boris Johnson cheered the announcement of the deal “with our American friends”.
“This is fantastic news and a very welcome boost to our steel and aluminium industries,” he said on Twitter.
The announcement of the deal was also welcomed by many business executives and labour leaders in both countries.