US-EU deal will bring some relief to steel and aluminum prices and EU tariffs
The agreement between the United States and the EU does not remove all Section 232 tariffs on steel and aluminum from Europe, but will set a tariff rate quota on imports of steel and aluminum. aluminum based on historical export volumes. The United States and Europe have also agreed to put aside their current dispute over Article 232 of the World Trade Organization.
Announcing the deal, Commerce Secretary Gina Raimondo said the cost of steel over the past year has tripled for auto and home appliance makers, adding to higher costs for manufacturers. consumers. The deal would reduce inflationary pressures on automobiles, appliances and canned goods, Raimondo said. “Today’s news will bring much-needed relief to workers and industries, to workers and businesses who have been threatened with crushing 50% retaliatory tariffs, and to American consumers worried about rising prices. price.”
Raimondo added that the deal would also protect U.S. companies from other European tariffs, including Harley Davidson motorcycles and Kentucky bourbon.
Zippy Duvall, president of the American Farm Bureau Federation, said the deal is good news for farmers, who have also been hit by tariffs on American produce and higher prices for equipment. heavy.
“As the dispute revolved around steel and aluminum, farmers were dragged into turmoil as the EU clamped down on U.S. agricultural exports like orange juice, butter, cheese, pork, nuts and many others. It is crucial that we now reestablish these trade relations, “said Duval. âAs we continue to recover from the impact of the global pandemic, American farmers need the stability and predictability of strong trade agreements to increase exports and provide healthy, affordable food to our international neighbors. “
The Distilled Spirits Council hailed the deal between the US and the EU, citing three years of declining whiskey exports to Europe. Since the tariffs, exports of American whiskey to Europe have fallen by 37%, said Chris Swonger, chairman and CEO of the board.
âThe lifting of this tariff burden on American whiskeys not only stimulates American distillers and farmers, but also supports the recovery of EU restaurants, bars and distilleries hit hard by the pandemic,â Swonger said.
Myron Brilliant, head of international affairs for the US Chamber of Commerce, said the US-EU deal would provide some relief to US manufacturers, “but more action is needed.” He noted that companies that saw EU tariffs lifted would welcome the news. The House had criticized Section 232 tariffs when they were imposed, noting that they hurt trading partners while failing to address the global overcapacity that comes largely from China.
âThese tariffs hurt 50 American workers for every person they helped. We should learn from this experience,â Brilliant said.
Brilliant added that tariffs should also be removed against other countries. In addition to announcing the deal with the EU, the Commerce Department on Sunday issued two separate statements that the US is also in talks with the UK and Japan to reach similar steel capacity deals. and aluminum, as well as reducing carbon emissions from the industry.
Swonger of the Distilled Spirits Council credited the Biden administration with resetting trade relations with the EU. âThe end of this long pricing nightmare is in sight for US distillers, who have battled tariff burdens and the pandemic. It is time for the UK to lift its tariff on US whiskeys so we can all get back to toast, no tariffs. ”
Chris Clayton can be contacted at [email protected]
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