The United States and the United Kingdom ended their four-year trade dispute over steel and aluminum tariffs on Tuesday. US Secretary of Commerce Gina Raimondo and Trade Ambassador Katherine Tai in a statement announced. They write that the two allies will mainly work together to compete with China.
In 2018, then-US President Donald Trump imposed tariffs of 25 percent on steel and 10 percent on aluminum. He said he wanted to protect American producers against subsidized imports. International trading partners of the US, such as the EU, reacted with dismay, in turn announcing tariffs on US products such as Harley Davidson motorcycles and bourbon (whiskey).
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The US-UK deal should now protect steel and aluminum companies in both countries, including their employees, from such tariffs. “Since taking office, President Biden has made it a top priority to rebuild our relationships with our allies and partners around the world,” the US secretary said in the statement. At the end of last year, Biden also settled the conflict with the EU.
Among other things, the deal requires any British steel company owned by a Chinese company to sift through its financial records to properly assess China’s influence. The company must then share this information with the US. This will apply, for example, to the British Steel company, which was acquired by the Chinese Jingye Group in 2020. The US Department says this will help “counter China’s unfair trade practices” and ensure “America can compete globally in the 21st century.” The British Ministry in a statement mainly want to protect the national steel industry.