The United States and Britain ended a four-year dispute over US steel and aluminum tariffs on Tuesday, pledging to work together to counter China in a deal that also removes retaliatory tariffs from US motorcycles, whiskey and other products.
In a joint statement, US Commerce Secretary Gina Raimondo and US Trade Representative Katherine Tai said the deal would protect steel and aluminum companies - and their workers - in both countries, allowing the allies to focus on what they say are "China's unfair trade practices."
The deal would also help ease inflation in the US, where consumer prices have hit their highest level in 40 years, Raimondo said.
Under the deal, Britain will receive a duty-free import quota of over 500,000 tonnes of steel "melted and poured" in the country annually, with higher volumes subject to the 25 per cent tariff.
It also sets smelt and cast requirements on aluminum, requiring importers to certify the origin of raw aluminum used, a move to combat subsidized metal from China and other countries.
The agreement requires any UK steel company owned by a Chinese entity to audit their financial records to assess influence from the People's Republic of China government, and then share them with the US, the statement said. The requirement will initially apply to British Steel, acquired by China's Jingye Group in 2020.
The announcement of the deal was warmly welcomed by many business executives and labor leaders in both countries.
The pact, which comes after Raimondo met with Britain's International Trade Secretary, Anne-Marie Trevelyan, also will end Britain's retaliatory tariffs on iconic American goods, including Harley-Davidson motorcycles, bourbon whiskey, Levi Strauss blue jeans, and cigarettes.
The United States has reached similar deals with the European Union and Japan.
Prime Minister Boris Johnson hailed the deal in a tweet as "fantastic news and a very welcome boost to our steel and aluminium industries."
Trevelyan said the deal would help support some 80,000 jobs across Britain. She met with Raimondo in Washington after two days of meetings with Tai and other US trade officials about expanding US-UK trade ties and ensuring that both countries address a changing digital economy and protect labor rights and the environment.
The Trump administration imposed the tariffs of 10 per cent on aluminum and 25 per cent on steel in March 2018 under the Section 232 national security law to protect US producers from a flood of subsidized imports.
