ROME — The United States and the European Union on Saturday announced an easing of a trade dispute that started during the Trump administration.
The previous U.S. administration imposed a 25% tariff on European steel and another 10% tariff on aluminum in June 2018 on the grounds of national security.
The EU strongly contested the move and after several failed attempts to reach an agreement with Trump’s administration, the United States imposed a 25% tariff on European steel and another % tariff on aluminum in June 2018. This was done to protect national security. 78 trillion) of U.S. Exports. Bourbon whiskey, peanut butter, and orange juice were the EU’s target products.
The EU initially targeted 2.8 billion Euros of U.S. exports. It then said it would apply the remaining 3.66 billion euros three years later, or after a positive outcome at the WTO. In a gesture of good faith to the Biden administration, this second tranche of tariffs was halted earlier in the year.
“We have reached an agreement to halt our steel & aluminum trade dispute and to launch cooperation on a Global Arrangement for Sustainable Steel & Aluminium,” Valdis Dombrovskis, the EU’s trade chief said on Saturday on Twitter.
Details from the agreement were published on Sunday. They showed that both sides want to discourage trade in high carbon steel and aluminum. “
In the interim, the U.S. stated that it would not apply the metal tariffs to American goods and that the EU would also suspend the related tariffs.
Speaking Sunday, President Joe Biden said the deal “immediately removes tariffs on the European Union on a range of American products and lowers costs on American consumers, and ensures a strong and competitive U.S. steel industry for decades to come. “
Biden described the agreement as a “creative solution”. “
This transatlantic announcement comes at an important time in their relationship.
European allies have been somewhat worried about President Biden’s foreign policy, after the difficult withdrawal from Afghanistan in the summer, the controversial nuclear submarine deal with Australia and the lack of developments to fix trade disputes.
European Commission President Ursula von der Leyen said Sunday that their latest deal was a “major step forward in our renewed partnership. “