The United States and the United Kingdom agreed to negotiate tariffs on steel and aluminum

Source: Economic Reference Newspaper

According to the Associated Press, on January 19, local time, the United Kingdom and the United States agreed to negotiate the removal of import tariffs imposed by former US President Trump on British steel and aluminum. The agreement between the United States and the European Union on tariffs has been implemented, putting enormous pressure on the British steel and aluminium industries. Britain's Department for International Trade said it needed to reach a quick resolution to remove the tariffs in a timely manner.

U.S. Commerce Secretary Raimondo, Trade Representative Catherine Day and British Secretary of State for International Trade Anne-Marie Teverian issued a joint statement on the 19th that they will strive to reach an agreement as soon as possible to ensure the viability of the steel and aluminum industries of the two countries and "strengthen the democratic alliance between the two countries."

The UK's Department of International Trade said in a statement on the 19th: "Our focus now is to reach a quick solution, quickly eliminate these tariffs, and clear the way for the growth of our prosperous trade relations." ”

The U.S. and U.K. sides did not disclose a specific date or timeline for the talks, but the talks will address global steel and aluminum overcapacity, including U.S. tariffs on metals from britain. The talks will also involve a 25 percent retaliatory tariff on U.K. products, including whiskey, motorcycles, jeans and tobacco.

The Confederation of British Chambers of Commerce and Industry (CBI) welcomed the news of the talks, saying it was "vital" to reach a settlement to ease pressure on the affected industries, especially as inflationary pressures in both countries mounted. "Trade must be a tool for growth, and there are no winners in trade wars." Andy Berville, international director of the British Chamber of Commerce and Industry, said in a statement.

U.S. brewers also hope negotiations will end British tariffs on U.S. spirits. Chris Swanger, chairman of the American Distillery Council, called the 19th statement "a very positive development."

According to the British "Guardian" report, if the British government's negotiations with the United States fail to achieve a corresponding breakthrough, British steel and aluminum exports to the United States will continue to be subject to tariffs. With competitors from the EU taking a 25% price advantage in the huge US market, the UK steel industry could see a trade plunge.

In 2018, Trump imposed tariffs of 25 percent and 10 percent on foreign steel and aluminum, respectively, saying they posed a threat to U.S. national security, a move that angered Britain, Europe and other longtime U.S. allies. Although U.S. President Joe Biden has criticized Mr. Trump for alienating allies, he has been slow to remove metal tariffs after taking office a year ago. In politically important steel-producing states, metal tariffs are popular.

Last year, the Biden administration struck a deal with the European Union agreeing to lower tariffs on EU metals below the new import quota and to continue to tax imports that exceed the new quota. The European Union has lifted retaliatory tariffs on U.S. products, including whisky.