The United States and European Union have agreed to end a festering dispute over US&nbsp;steel and aluminum tariffs imposed by former President Donald Trump in 2018, removing an irritant in transatlantic relations and averting a spike in EU retaliatory tariffs, US&nbsp;officials said on Saturday.

Commerce Secretary Gina Raimondo told reporters that the deal will maintain US&nbsp;"Section 232" tariffs of 25 per cent&nbsp;on steel and 10 per cent&nbsp;aluminum, while allowing "limited volumes" of EU-produced metals into the United States duty free.

Also Read |&nbsp;<a href="https://www.wionews.com/world/aukus-deal-joe-biden-tells-emmanuel-macron-that-us-was-clumsy-425127">AUKUS deal: Joe Biden tells Emmanuel Macron that US was 'clumsy'</a>

It eliminates a source of friction between the allies and lets them focus on negotiating a new global trade agreement to address worldwide excess steel and aluminum capacity mainly centered in China and reduce carbon emissions from the industries.

EU trade chief Valdis Dombrovskis confirmed the deal, writing on Twitter&nbsp; that "we have agreed with US&nbsp;to pause" the trade dispute and launch cooperation on a future global arrangement on sustainable steel and aluminum. Dombrovskis said the deal will be formally announced by Biden and European Commission President Ursula von der Leyen on Sunday.

US&nbsp;officials did not specify the volume of duty-free steel to be allowed into the United States under a tariff-rate quota system agreed upon with the EU. Sources familiar with the deal, speaking on condition of anonymity, have said annual volumes above 3.3 million tons would be subject to tariffs.

The deal grants an additional two years of duty-free access above the quota for EU steel products that won Commerce Department exclusions in the past year, US&nbsp;officials said.

The agreement requires EU steel and aluminum to be entirely produced in the bloc - a standard known as "melted and poured" - to qualify for duty-free status. The provision is aimed at preventing metals from

China and non-EU countries from being minimally processed in Europe before export to the United States. 
Europe exported&nbsp;around 5 million tons of steel annually to the United States prior to Trump's imposition of the tariffs on national security grounds.

"The agreement ultimately to negotiate a carbon-based arrangement on steel and aluminum trade addresses both Chinese overproduction and carbon intensity in the steel and aluminum sector," White House National Security Adviser Jake Sullivan told reporters, adding that the climate and workers can be protected at the same time.

US&nbsp;steel production, which relies heavily on electric-arc furnaces, is regarded as having far lower carbon emissions than the coal-fueled blast furnaces prevalent in China.

Biden has sought to mend fences with European allies following Trump's presidency to more broadly confront China's state-driven economic practices that led to Beijing building massive excess steelmaking capacity that has flooded global markets.

Also Read |&nbsp;<a href="https://www.wionews.com/world/pressure-of-blackmail-eu-court-imposes-massive-fine-of-over-1-million-per-day-on-poland-424592">'Pressure of blackmail': EU court imposes massive fine of over $1 million per day on Poland</a>

The deal will eliminate Europe's retaliatory tariffs against US&nbsp;products including bourbon whiskey, Harley-Davidson motorcycles and motor boats that were set to double on December&nbsp;1, US&nbsp;officials said.

"The end of this long tariff nightmare is in sight for US&nbsp;distillers, who have struggled with the weight of the tariffs and the pandemic," Distilled Spirits Council President Chris Swonger said, also urging Britain to lift its tariff on American whiskeys.

Record Steel Prices

Raimondo said the deal will reduce costs for steel-consuming US&nbsp;manufacturers. Steel prices have more than tripled in the past year to records topping $1,900 a ton as the industry has struggled to keep up with a demand surge after COVID-19 pandemic-related shutdowns, contributing to inflation.

US&nbsp;primary aluminum producers, which had dwindled to two companies by the time Trump imposed the tariffs, will be able to maintain their investments in reviving domestic capacity because the quotas are set at very low levels, well below pre-tariff volumes, said Mark Duffy, CEO of the American Primary Aluminum Association industry group.

American Iron and Steel Institute President Kevin Dempsey said the quota arrangement will help "prevent another steel import surge that would undermine our industry and destroy good-paying American jobs."

"We urge the US&nbsp;and EU to take active steps to hold China and other countries that employ trade-distorting policies to account," Dempsey added. "We also believe US-EU cooperation should focus on new trade approaches to address climate change, including through development of effective carbon border adjustment measures."

Due to its exit from the EU, Britain's steel exports remain subject to the tariffs, as are those of other US&nbsp;allies including Japan. The US&nbsp;Chamber of Commerce, which opposed the metals tariffs from the start, said the duties and quotas should be dropped from "close allies."

The United States and European Union have agreed to end a festering dispute over US steel and aluminum tariffs imposed by former President Donald Trump in 2018, removing an irritant in transatlantic relations and averting a spike in EU retaliatory tariffs, US officials said on Saturday.

The United States and European Union have agreed to end a festering dispute over US steel and aluminum tariffs imposed by former President Donald Trump in 2018, removing an irritant in transatlantic relations and averting a spike in EU retaliatory tariffs, US officials said on Saturday. Commerce Secretary Gina Raimondo told reporters that the deal will maintain US "Section 232" tariffs of 25 per cent on steel and 10 per cent aluminum, while allowing "limited volumes" of EU-produced metals into the United States duty free. Also Read | AUKUS deal: Joe Biden tells Emmanuel Macron that US was 'clumsy' It eliminates a source of friction between the allies and lets them focus on negotiating a new global trade agreement to address worldwide excess steel and aluminum capacity mainly centered in China and reduce carbon emissions from the industries. EU trade chief Valdis Dombrovskis confirmed the deal, writing on Twitter that "we have agreed with US to pause" the trade dispute and launch cooperation on a future global arrangement on sustainable steel and aluminum. Dombrovskis said the deal will be formally announced by Biden and European Commission President Ursula von der Leyen on Sunday. US officials did not specify the volume of duty-free steel to be allowed into the United States under a tariff-rate quota system agreed upon with the EU. Sources familiar with the deal, speaking on condition of anonymity, have said annual volumes above 3.3 million tons would be subject to tariffs. The deal grants an additional two years of duty-free access above the quota for EU steel products that won Commerce Department exclusions in the past year, US officials said. The agreement requires EU steel and aluminum to be entirely produced in the bloc - a standard known as "melted and poured" - to qualify for duty-free status. The provision is aimed at preventing metals from China and non-EU countries from being minimally processed in Europe before export to the United States. Europe exported around 5 million tons of steel annually to the United States prior to Trump's imposition of the tariffs on national security grounds. "The agreement ultimately to negotiate a carbon-based arrangement on steel and aluminum trade addresses both Chinese overproduction and carbon intensity in the steel and aluminum sector," White House National Security Adviser Jake Sullivan told reporters, adding that the climate and workers can be protected at the same time. US steel production, which relies heavily on electric-arc furnaces, is regarded as having far lower carbon emissions than the coal-fueled blast furnaces prevalent in China. Biden has sought to mend fences with European allies following Trump's presidency to more broadly confront China's state-driven economic practices that led to Beijing building massive excess steelmaking capacity that has flooded global markets. Also Read | 'Pressure of blackmail': EU court imposes massive fine of over $1 million per day on Poland The deal will eliminate Europe's retaliatory tariffs against US products including bourbon whiskey, Harley-Davidson motorcycles and motor boats that were set to double on December 1, US officials said. "The end of this long tariff nightmare is in sight for US distillers, who have struggled with the weight of the tariffs and the pandemic," Distilled Spirits Council President Chris Swonger said, also urging Britain to lift its tariff on American whiskeys. Record Steel Prices Raimondo said the deal will reduce costs for steel-consuming US manufacturers. Steel prices have more than tripled in the past year to records topping $1,900 a ton as the industry has struggled to keep up with a demand surge after COVID-19 pandemic-related shutdowns, contributing to inflation. US primary aluminum producers, which had dwindled to two companies by the time Trump imposed the tariffs, will be able to maintain their investments in reviving domestic capacity because the quotas are set at very low levels, well below pre-tariff volumes, said Mark Duffy, CEO of the American Primary Aluminum Association industry group. American Iron and Steel Institute President Kevin Dempsey said the quota arrangement will help "prevent another steel import surge that would undermine our industry and destroy good-paying American jobs." "We urge the US and EU to take active steps to hold China and other countries that employ trade-distorting policies to account," Dempsey added. "We also believe US-EU cooperation should focus on new trade approaches to address climate change, including through development of effective carbon border adjustment measures." Due to its exit from the EU, Britain's steel exports remain subject to the tariffs, as are those of other US allies including Japan. The US Chamber of Commerce, which opposed the metals tariffs from the start, said the duties and quotas should be dropped from "close allies."

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

The year 2019 has proven to be a tough year for India's top metal tycoon Tata Steel. The steel sector across Europe is battling surplus capacity and high costs causing big losses to metal firms.&nbsp;

Tata Steel has already announced job cuts in the region which angered the unions. Amid this Tata Steel is planning to hold talks with its workers on a “transformation programme” that involves up to three thousand job cuts.

The company plans to cut up to 1,600 manpower in the Netherlands and 1000 in Britain and 350 elsewhere in Europe. About two-thirds of job losses are expected to be managed and office-based roles. Indian-owned Tata steel announced the restructuring plans on November 18 in a bid to boost profitability.

The restructuring follows a decision by competition regulators in June to block a joint venture with Germany's ThyssenKrupp.

Unions in Britain and the Netherlands said that after that deal collapsed, they were given a job guarantee until 2021, and they would expect the company to stick to that.

Tata has said their proposals are designed to ensure a long-term future, but the unions say a vision that includes plans for investment has been consistently lacking.

Tata Steel is not the only metal firm battling with a sales drop in the European region. Britain’s biggest steel factory, British Steel, went into compulsory liquidation in may and is subject to a provisional agreement to be sold to Chinese steelmaker Jingye, which requires regulatory approvals if it is to go ahead. ArcelorMittal, the world’s biggest steelmaker, has idled a series of plants across Europe. It is also in conflict with the Italian government over its attempt to walk away from a deal signed in the year 2018 to buy Europe's largest steel plant Ilva.

(With inputs from agencies)

The year 2019 has proven to be a tough year for India's top metal tycoon Tata Steel. The steel sector across Europe is battling surplus capacity and high costs causing big losses to metal firms.

The year 2019 has proven to be a tough year for India's top metal tycoon Tata Steel. The steel sector across Europe is battling surplus capacity and high costs causing big losses to metal firms. Tata Steel has already announced job cuts in the region which angered the unions. Amid this Tata Steel is planning to hold talks with its workers on a “transformation programme” that involves up to three thousand job cuts. The company plans to cut up to 1,600 manpower in the Netherlands and 1000 in Britain and 350 elsewhere in Europe. About two-thirds of job losses are expected to be managed and office-based roles. Indian-owned Tata steel announced the restructuring plans on November 18 in a bid to boost profitability. The restructuring follows a decision by competition regulators in June to block a joint venture with Germany's ThyssenKrupp. Unions in Britain and the Netherlands said that after that deal collapsed, they were given a job guarantee until 2021, and they would expect the company to stick to that. Tata has said their proposals are designed to ensure a long-term future, but the unions say a vision that includes plans for investment has been consistently lacking. Tata Steel is not the only metal firm battling with a sales drop in the European region. Britain’s biggest steel factory, British Steel, went into compulsory liquidation in may and is subject to a provisional agreement to be sold to Chinese steelmaker Jingye, which requires regulatory approvals if it is to go ahead. ArcelorMittal, the world’s biggest steelmaker, has idled a series of plants across Europe. It is also in conflict with the Italian government over its attempt to walk away from a deal signed in the year 2018 to buy Europe's largest steel plant Ilva. (With inputs from agencies)

Tata Steel announces job cuts across Europe after major losses in 2019

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

Tata Steel announces job cuts across Europe after major losses in 2019