U.S., E.U. to end Trump’s tax war over time on steel, aluminum

Trade Secretary Gina Raimondo told reporters that the agreement would allow "limited ratings" of EU-produced steel to enter the United States for free.

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source: https://ibb.co/7gtwmSQ

The United States and the European Union have agreed to end a dispute over U.S. steel and aluminum tariffs imposed by former President Donald Trump in 2018, to remove offensive transatlantic ties and avoid a spike in EU retaliatory prices, officials say. Americans on Saturday.

Trade Secretary Gina Raimondo told reporters that the agreement would keep US "Section 232" prices 25% of steel and 10% of aluminum, while allowing "limited volumes" of steel produced by E.U. in the United States for free.

It eliminates the source of conflict between co-operatives and allows them to focus on negotiating a new international trade agreement to address the global excess of steel and aluminum concentrated mainly in China and reducing carbon emissions in industry.

E.U. trade chief Valdis Dombrovskis confirmed the agreement, writing on Twitter that it had "agreed with the U.S. to suspend" the trade dispute and introduced a partnership in the future global system with stainless steel and aluminum. Dombrovskis said the agreement would be officially announced by Biden and European Commission President Ursula von der Leyen on Sunday.

U.S. officials did not specify the amount of toll-free steel that should be allowed to enter the United States under the E.U-agreed tax quota system.

The agreement provides for an additional two years of free access in addition to the E.U allocation. steel products that won the Department of Trade release last year, U.S. officials said.

The agreement requires E.U. steel and aluminum to be fully produced in the bloc - a level known as "melted and poured" - to qualify for a non-charge. The offer is aimed at banning imports from China and non-E.U. countries from small processing in Europe before shipment to United States.

Europe exported to the United States about 5 million tons a year before Trump imposed tariffs for national security reasons.

"The final agreement to negotiate a carbon-based aluminum trade agreement addresses Chinese overcrowding and carbon offsets in the steel and aluminum sector," White House national security adviser Jake Sullivan told reporters, adding that the weather and workers could be protected. at the same time.

U.S. steel production, which relies heavily on electric-arc furnaces, is considered to be much lower carbon emissions than China's most common coal-fired power plants.

Biden sought to rehabilitate fences with European partners following Trump's presidency to deal more closely with the Chinese government's economic policies that have led to Beijing's massive steel mills that have engulfed global markets.

The agreement will end European tax on retaliation for U.S. products including bourbon whiskey, Harley-Davidson motorcycles and motorized boats that were supposed to double on December 1, U.S. officials said.

"The end of this catastrophic financial crisis is already being felt by American suppliers, who have struggled with inflation and the epidemic," said Distilled Spirits Council President Chris Swonger, urging Britain to raise taxes on American whiskeys.

Record metal values

Raimondo said the agreement would reduce costs for US manufacturers using steel. Steel prices have more than tripled last year to record upwards of $ 1,900 per ton as the industry struggles to keep up with rising demand after the closure of the COVID-19-related epidemic, which contributes to inflation.

The first U.S. aluminum producers, who had shrunk to two companies when Trump set prices, will be able to keep their investment in domestic energy recovery because quotas are set at very low levels, below pre-tax volumes, Mark Duffy said. , CEO of the American Primary Aluminum Association industry group.

The President of the American Iron and Steel Institute Kevin Dempsey said the budget plan would help "prevent further rise in iron ore that will affect our industry and disrupt well-paying American jobs."

"We urge the U.S. and the U.S. to take concrete steps to hold China and other countries using trade-offing policies to account," Dempsey said. "We also believe that U.S.-E.U. cooperation should focus on new trade approaches to climate change, including the development of effective measures to improve the carbon boundary."

As a result of its withdrawal from E.U., British steel exports remain low in cost, as do other U.S. allies. including Japan. The U.S. The Chamber of Commerce, which has opposed steel taxes from the beginning, has said jobs and rates should be reduced "to partners."