Novel Agreement with Critical Trade Partner Showcases Historic Trade Relationship Between the Two Countries and Will Counter Unfair Trade practices by China That Harm our Industries and Workers
WASHINGTON — Today, United States Trade Representative Katherine C. Tai and United States Secretary of Commerce Gina M. Raimondo announced a new 232 tariff agreement with the United Kingdom to allow historically-based sustainable volumes of U.K. steel and aluminum products to enter the U.S. market without the application of Section 232 tariffs. In addition to novel smelt and cast requirements on aluminum, this deal also requires that any U.K. steel company owned by a Chinese entity must undertake an audit of their financial records to assess influence from the People’s Republic of China government. The results of these audits must also be shared with the United States.
This critical deal will not only help to ensure the long-term viability of our steel and aluminum industries, and protect American jobs, but once implemented, it will also lift retaliatory tariffs on over $500 million worth of U.S. exports to the U.K., including distilled spirits, various agriculture products and consumer goods. This deal serves as another example of President Biden’s commitment to rebuilding and strengthening relationships with our vital Allies and partners, while working together to address unfair practices by countries like China.
Ambassador Tai and Secretary Raimondo released the following statements:
Statement from Ambassador Katherine Tai:
“The deal announced today delivers on President Biden’s vision to work with our allies and partners to address shared challenges while also helping to ensure the long-term viability of our steel and aluminum industries, the communities they support, and most importantly, the workers in these industries on both sides of the Atlantic. In addition to the U.K. eliminating the retaliatory tariffs against the United States, we have also agreed to continue engaging on the threat posed by carbon intensive non-market excess capacity in the steel and aluminum industries.
“Throughout these negotiations and our successful effort to resolve the Boeing-Airbus dispute last year, Secretary of State for International Trade Anne-Marie Trevelyan and Secretary of State for Foreign, Commonwealth and Development Affairs Liz Truss have been thoughtful, honest partners. This renewed cooperation and shared commitment to creating durable trade policy that puts workers front and center will lead to greater prosperity for our citizens on both sides of the Atlantic and around world.”
Statement from Commerce Secretary Gina M. Raimondo:
“Since taking office, President Biden has made it a top priority to rebuild our relationships with our allies and partners around the world as we work to counter China’s unfair trade practices and ensure that America is able to compete globally in the 21st century. Today’s historic deal is a testament to that ambitious goal and will benefit America’s steel and aluminum industries and workers by protecting manufacturing, as well as consumers by easing inflationary pressures in the U.S. By allowing for a flow of duty-free steel and aluminum from the UK, we further ease the gap between supply and demand for these products in the United States. And by removing the UK’s retaliatory tariffs, we reopen the British market to beloved American products.
“I want to thank my counterpart, U.K. Secretary of State for International Trade Anne-Marie Trevelyan, for her part in this effort, which brings our countries closer together and represents a win-win for both businesses and consumers in the U.S. and the U.K.”
For details and language about the agreements, please view these documents: