After two months of negotiations, the United States and the United Kingdom announced they have reached a tariff agreement over steel and aluminum products that would allow historically-based sustainable volumes of UK steel and aluminum products to enter the U.S. market without the application of Section 232 tariffs, which are currently set at 25% for UK steel products and 10% of UK aluminum products. The changes will take effect on June 1, 2022.
In exchange for lifting the tariffs, the UK agreed to lift retaliatory tariffs on over $500 million worth of U.S. exports, including distilled spirits (i.e., whiskey), agriculture products, and consumer goods (i.e., blue jeans and motorcycles). Notably, the deal requires that any UK steel company owned by a Chinese entity undergo an audit that assesses the level of influence that the People's Republic of China government maintains over the company.
- The full announcement can be found here.
- The joint statement from the U.S. Department of Commerce and United States Trade Representative can be found here.
- The statement from the UK Department of International Trade can be found here.
- The U.S.-UK Joint Statement on the move can be found here.
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