US, EU end Trump-era tariff war over steel and aluminium

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US, EU end Trump-era tariff war over steel and aluminium

On Saturday, top US officials said that the US and EU had agreed to wind up a withering tariff dispute over US steel and aluminium inclined by former US President Donald Trump back in the 2018s, indicating debarkations of a dialectical deal what in effect would avert a likely shoot-up in EU retaliatory tariff while stemming an improvement in transatlantic trade relationship.

Meanwhile, US Commerce Secretary was quoted saying to the reporters late in the day that the deal, which would be formally announced by EU Commission President Ursula Von der Leyen alongside the US President Joe Biden on Sunday, would keep a 10 per cent tariff on aluminium and a 25 per cent tariff on steel under US ‘section 232,’ however, the accord would allow imports of a ‘limited volume’ of tax-free EU-borne metals into the US.

In tandem, as the agreement reached on Saturday could rub out a staggering source of conflict between the US and its western allies while apprehending Beijing’s growing supremacy in global steel and aluminium industry, EU trade chief Valdis Dombrovskis turned to Twitter to confirm the deal saying “we have agreed with U.S.

to pause the trade dispute” and resume collaboration on impending global arrangements.

US and EU agree to pause trade dispute over steel and aluminium

Apart from that, although officials did not disclose the volume of EU-borne steel and aluminium the United States would allow into the country on a duty-free basis as agreed on Saturday, sources familiar with the proceedings had told late in the day on condition of anonymity that an annual volume of roughly 3.3 million tons would likely be levied.

Meanwhile, referring to Beijing’s overproduction of steel and aluminium, White House National Security Adviser, Jake Sullivan said to the reporters following the announcement, “The agreement ultimately to negotiate a carbon-based arrangement on steel and aluminium trade addresses both Chinese overproduction and carbon intensity in the steel and aluminium sector”.