On Monday, the US Government officials alongside European Union trade negotiators had decided against exacerbating their disputes over tariff hikes on US steel and aluminium, nipping worries of steep tariff hike in the bud as both sides were reportedly continuing formal talks to counter an excess in global capacity mostly docketed on China.
On top of that, the European Commission that oversees trade interests for the 26-member bloc, was quoted saying in a statement late on the day that it had agreed to peter out a planned tariff hike for up to six months, staving off the likelihoods of what could have witnessed a nearly 100 per cent jump in tariffs on Harley-Davidson motorcycles, American motorboats and whiskey starting from June 1.
Nonetheless, the United States would continue to maintain a 25 per cent tariff on steel and 10 per cent on aluminium, even as the EU had seemingly ramped up efforts to de-escalate a trade friction with the United States following four years of wears and tears under a Trump Administration that had waged trade wars on roughly all of its trade partners including the EU.
However, the tariffs on steel and aluminium would also stay on imports from China, Norway, Russia, India, Switzerland, Turkey, Japan, S.
Korean alongside other metal-exporting countries.
EU & US avert steep tariff hike on American goods
Aside from that, Brussels and Washington had issued a joint statement late on the day saying that the allies and market-oriented economies, which had promised not to spiral backwards to a Soviet-style economy in a post-World War II meet in the Briton Woods, could promote a higher trade standard, weather shared concerns and “and hold countries like China that support trade-distorting policies to account”.