Months of tension have been eased as the UK and US agreed to lift tariffs on British steel exports which were implemented during the Trump era.
With the new agreement, steel and aluminium industries will be protected in both countries, leaving the sole focus on ‘China’s unjust trade policies’, according to a joint statement by UK’s international trade minister, Anne-Marie Trevelyan and US commerce secretary, Gina Raimondo.
The agreement is also reportedly set to ease inflationary pressure on the US, with reduced costs of manufacturing as a by-product of tariff-free steel.
The UK will receive a ‘duty-free import quota’ of more than 500,000 tonnes of steel each year under the new agreement, with larger volumes subject to a 25% tariff.
The agreement will also require aluminium importers to report the origin of raw aluminium in order to restrict subsidised metal from China and other countries.
Under the agreement, UK steel businesses owned by Chinese companies will be required to disclose their financial records with the US to determine any involvement with the Chinese government.
Following the introduction of tariffs imposed during Trump’s tenure, the UK retaliated with tariffs on American goods such as Levi’s jeans and Harley Davidson bikes.
These tariffs are reportedly set to be removed following the agreement announced today.
Alasdair McDiarmid, operations director for the steelworkers’ union Community, said in an article with the Guardian: “the news the US steel tariffs are being lifted is welcome, though we need to understand the full detail of the agreement.”
“To protect jobs our steelmakers must compete on a level playing field, and it is vital the UK does not suffer a further competitive disadvantage with EU producers.”
“The EU secured their deal with the US back in October, so a UK-US deal is well overdue, and it must be implemented without delay to prevent further damage to our industry.”