Steel deal means an end to UK tariffs on popular American brands such as Levis and Harley-Davidson
Fans of whiskey, blue jeans, and motorbikes will welcome a deal struck between the UK and US on steel tariffs.
The US has agreed to partially end tariffs on British steel and aluminium, which were imposed by the Trump administration during a dispute with the European Union in 2018.
In response, the UK will suspend retaliatory measures it had taken against US products including bourbon whiskey, Levi Strauss blue jeans, and Harley-Davidson motorbikes.
The Department for International Trade said that the “expansive removal” of tariffs would take effect in June this year.
International Trade Secretary Anne-Marie Trevelyan said the deal was “good news for our steel and aluminium industries”, which had been “unfairly hit” by the tariffs.
Steel and aluminium tariffs had cost industry more than £60m a year
Ms Trevelyan has previously said the tariffs – 25% on steel and 10% on aluminium – had cost the industry more than £60m per year.
The solution agreed by the UK and US will involve replacing section 232 tariffs on certain exports of steel and aluminium with tariff rate quotas.
“It means our manufacturers can now enjoy a high level of tariff-free access to the US market once again,” she said.
But Shadow international trade secretary Nick Thomas-Symonds said: “UK steel and aluminium manufacturers have had to face four years of punitive tariffs initially imposed by president Trump.
“Ministers have dithered and delayed, so finally getting these tariffs lifted is a welcome relief. The government now needs to make sure that this agreement comes into effect at the earliest opportunity.
“Ministers need to secure stable long-term trading agreement with the US”, Labour says
“In their 2019 manifesto, the Conservatives promised a US trade deal by the end of 2022. Ministers need to get moving to secure a stable long-term trading arrangement with the US, and keep their promise to the public.”
Gareth Stace, director general of UK Steel, said: “I would like to congratulate the Government on behalf of the entire steel sector for its success in these hard-fought negotiations which have resulted in a hugely positive outcome for UK steelmakers.
“This deal is the culmination of months of dedicated work from Anne-Marie Trevelyan and her department, removing long-standing export barriers and opening up access to the important and high-value US steel market.
“The benefits of this deal will be felt by steel companies and their employees right across the UK and is immensely welcome.”
Britain is a relatively small supplier of steel to the US.
Its 500,000-tonne quota for finished steel is slightly more than average UK shipments to the United States for 2018 and 2019, and is much smaller than the EU quota of about 4 million tons and Japan’s 1.25 million tons.
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