The United States agreed to withdraw tariffs on steel and aluminum from the United Kingdom, leaving behind a grudge between two allied countries dating back to the administration of President Donald Trump.
During a meeting Tuesday in Baltimore, both nations announced an agreement that will eliminate tariffs on British steel and aluminum that are below the new import quotas. The British government, for its part, agreed to withdraw the tariffs it had imposed in retaliation on US products, including whiskey.
In 2018, President Trump imposed tariffs of 25% on steel imports and 10% on aluminum, calling foreign metals a threat to U.S. national security, a move that outraged British, Europeans, and other longstanding American allies. Although President Joe Biden has criticized Trump for distancing himself from allied nations, once he assumed the presidency he was slow to reverse tariffs on metals, which are popular in steel-producing states that have great political weight.
Last year, the Biden government reached an agreement with the European Union to remove tariffs on metals from the bloc in amounts below the new import quotas and keep the tax on surpluses.
Throughout that time, detractors pointed out that Trump's tariffs on steel and aluminum did not have much impact on addressing the real problem facing US producers: Chinese overproduction. But the United States is already rejecting most steel from China.
According to the agreement released on Tuesday, Chinese steel companies in Britain still need to undergo annual audits to ensure that Chinese steel does not enter the United States free of tax.
American whiskey producers praised the resolution to the trade dispute.
“Distilleries across the United States applaud the end of this long tariff nightmare,” Chris Swonger, CEO of the Distilled Alcoholic Beverages Council, said in a statement.