The United States and the European Union agreed to lift tariffs on steel and aluminum.

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source: reuters.com

Both parties had been trying for months to reach an understanding to resolve this dispute that originated in 2018 during the term of Donald Trump.

The United States and the European Union agreed on Saturday to lift tariffs on imported steel and aluminum, ending a dispute that strained their trade ties since former President Donald Trump imposed the levies three years ago.

The agreement was announced by US Secretary of Commerce Gina Raymondo, who said it would allow a limited amount of steel and aluminum from the European Union to enter the United States duty-free.

Raymondo told Rome, where he was attending the G20 summit, that the EU's retaliatory measures against popular products such as Harley-Davidson motorcycles, Levi's jeans, and bourbon - effective December 1. Were - will no longer apply.

EU Trade Commissioner Valdes Dombrovskis said in a tweet: "We have agreed with the United States to end our trade dispute over steel and aluminum ... and to start cooperation on a global agreement on sustainable steel and aluminum." Is.

Trump imposed tariffs of 25% on steel and 10% on aluminum in June 2018 from various economies, including the European Union. He said he was acting for national security reasons. However, the Europeans hit back quickly, planning tariffs on tobacco, corn, rice, and orange juice from the United States , as well as motorcycles and whiskey.

In June, the United States and the EU gave each other until December 1 to resolve the matter.

"These industries faced retaliatory tariffs of 50%," Raimondo said of Harley-Davidson. "No business can survive that. There are 1.7 million Americans who make a living from the distilled spirits industry. According to this agreement, there are 5,600 workers at Harley-Davidson, and all of their jobs are safer today. "

The agreement announced on the first day of the G20 summit in Rome does not specify the volume of European steel and aluminum allowed in the United States duty-free.

"We hope this agreement will provide some relief to the supply chain and help reduce some cost increases," Raimondo said, referring to pandemic-related disruptions in the manufacturing and distribution of key products.

The agreement specifies that all steel imported from Europe to the United States must be manufactured entirely in Europe, Raimundo said.