US, EU reach agreement to settle rift over Trump-era tariffs


PTI, Oct 31, 2021, 10:34 AM IST

Image credit: AP Photo/Kirsty Wigglesworth

Rome: The U.S. and European Union have reached an agreement to settle their diplomatic rift over Trump-era steel and aluminum tariffs, the White House announced Saturday, as President Joe Biden is in Rome attending the Group of 20 summit.

The Trump administration had placed taxes on EU steel and aluminum in 2018 on the claim that the foreign products produced by American allies were a threat to U.S. national security. Europeans and other allies were outraged by Trump’s use of Article 232 to justify the tariffs, leading many to impose counter-tariffs on U.S.-made motorcycles, bourbon, peanut butter, and jeans, among other items.

National security adviser Jake Sullivan, U.S. Trade Representative Katherine Tai, and Commerce Secretary Gina Raimondo announced the agreement Saturday. They said that the Article 232 tariffs won’t be removed entirely but that some quantity of European steel and aluminum will be allowed to enter the U.S. without tariffs under the deal.

“We were able to reach an agreement whereby the EU will drop their retaliatory tariffs (on American goods),” Raimondo said. The agreement would ensure “that all steel entering the U.S. via Europe is produced entirely in Europe,” Raimondo added.

The easing of the tariffs is a key step in unwinding one of Trump’s legacies as Biden has tried to reset the U.S. relationship with Europe.

This back-and-forth hurt European producers and raised steel costs for American companies. The tariffs also did not achieve Trump’s stated goals of creating jobs at steel mills. The Bureau of Labor Statistics shows that jobs in the manufacturing of primary metals did rise slightly, to as much as 389,100 in 2019. But mills shed workers during the pandemic, and employment in the sector is roughly half of what it was in 1990.

The European Union took steps in May to improve relations. On some retaliatory tariffs, the EU temporarily suspended planned increases. This meant that American whiskey faced a 25% tax in Europe, instead of a planned 50% tax. The two sides faced a December deadline to avoid the higher tax rate.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

BJP accuses Kejriwal of deception over ‘Sanjeevani’ and ‘Mahila Samman’ schemes

Theatre stampede case: Police grill actor Allu Arjun for over 3 hrs; ask about sequence of events

Karnataka CM Siddaramaiah wishes Shivarajkumar speedy recovery

HC asks Centre’s response on plea of Yuvraj Singh’s NGO seeking FCRA renewal

Rafi a musical genius, his cultural influence transcends generations: PM Modi

Kalaburagi: GESCOM officials booked after woman injured by live wire

Derogatory comments row: K’taka Minister Hebbalkar dares BJP’s Ravi to take oath before god

Related Articles More

‘We should try again’: Punjab Assembly Speaker on Vajpayee’s failed India-Pak peace initiative

Delhi Police crackdown on illegal immigration of Bangladeshi citizens, 11 arrested

US expresses concern over sentencing of 25 civilians by Pakistan military court

‘Send Sheikh Hasina back to country’: Bangladesh writes to India

India & Kuwait elevate ties to strategic level; ink defence pact after PM Modi meets top Kuwaiti leaders

MUST WATCH

Tulunadu Daivaradane

Feeding Birds with Creative Paddy Art!

Areca Nut

HOTEL SRI DURGA BHAVANA

Harish Poonja


Latest Additions

BJP accuses Kejriwal of deception over ‘Sanjeevani’ and ‘Mahila Samman’ schemes

Theatre stampede case: Police grill actor Allu Arjun for over 3 hrs; ask about sequence of events

Karnataka CM Siddaramaiah wishes Shivarajkumar speedy recovery

HC asks Centre’s response on plea of Yuvraj Singh’s NGO seeking FCRA renewal

Rafi a musical genius, his cultural influence transcends generations: PM Modi

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.