US announces deal with UK to end steel, aluminum tariffs

The United States on Tuesday announced an agreement with Britain to end tariffs on steel and aluminum imports imposed by former President Donald Trump.

"By allowing for a flow of duty-freesteelandaluminumfrom theUK, we further ease the gap between supply and demand for these products in the United States," Commerce Secretary Gina Raimondo said in a statement.

"And by removing theUK's retaliatorytariffs, we reopen the British market to beloved American products."

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Thedealwas the latest in a series of efforts by President Joe Biden to settle trade spats with US allies, some of which were long-running and others started under the Trump administration.

British Prime Minister Boris Johnson cheered the announcement of thedeal"with our American friends."

"This is fantastic news and a very welcome boost to oursteelandaluminumindustries," he said on Twitter.

Washington and London in January announced the start of negotiations toendthe dispute, which began in 2018 when Trump imposed levies of 25 percent onsteeland 10 percent onaluminumimports from Britain and other nations to protect US industry.

US companies for years have struggled to compete with the glut of supply coming out of China, but Trump penalized close trade partners citing national security concerns, which worsened relations with major US allies.

The Biden administration in October reached adealtoendthetariffson the European Union, and in early February did the same with Japan.

Ending retaliation

Under thedealannounced Tuesday, Britain will lift retaliatorytariffsit imposed on $500 million in American imports, including alcohol and consumer goods, the statement said.

It also stipulates that any Britishsteelcompany "owned by a Chinese entity must undertake an audit of their financial records to assess influence from the People's Republic of China government," the results of which will be shared with the United States, the Commerce Department said.

Britain's International Trade Secretary Anne-Marie Trevelyan, who met with Raimondo in Washington to finalize the agreement, said thedealwas "good news for oursteelandaluminumindustries who have been unfairly hit by thesetariffs, and the 80,000 people employed across the sector."

US industry was more cautious in its praise, noting the benefits thetariffsprovided toaluminumandsteelmanufacturers.

"The Russian invasion of Ukraine should remind us all just how critical the domesticsteelindustry is to our national and economic security,"said Scott Paul, president of the Alliance for American Manufacturing.

"Section 232 quotas andtariffshave permitted the Americansteelindustry to recover, invest, hire, and contribute robustly to our national defense," he said, calling for a pause in more such deals to allow the industry to adjust.

The announcement followed two days of talks between US Trade Representative Katherine Tai and Trevelyan in the port city of Baltimore on the broader trade relationship.

In a statement, Tai said thedealto remove the metaltariffs"delivers on President Biden's vision to repair relationships with our allies while also helping to ensure the long-term viability of oursteelandaluminumindustries."

Free tradedeal?

Trevalyan and Tai said they would continue their talks next month in Scotland.

"Hopefully we can now move forward and focus on deepening our thriving trading relationship with the US," the British official said.

However, there was no indication of progress towards a free trade agreement between the two countries -- a priority of Britain following its departure from the European Union.

Marjorie Chorlins, senior vice president forEuropean Affairsat the US Chamber of Commerce, who took part in discussions in Baltimore on Monday, said a trade pact is not likely "at least not anytime soon."

Trump officials seemed ready to make a new bilateral arrangement with London and had even opened negotiations, but the Biden administration has shown little indication of wanting to continue them.