Status: October 31, 2021 00:08
The United States and the European Union have reached an agreement on a dispute over special tariffs on iron and aluminum from former President Trump. Accordingly, certain quantities can be re-imported into the United States duty free.
The United States eliminates special taxes of 25 percent and 10 percent, respectively, on the standard allocation of steel and aluminum imported from Europe. In return, Europeans are dropping additional taxes on American products such as Harley-Davidson motorcycles. U.S. National Security Adviser Jake Sullivan announced the breakthrough on the sidelines of the G20 summit in Rome. These taxes would have risen to 50 percent in December.
With the solution, the US government hopes to quickly overcome the current disruptions in the supply chains. In addition, the US side said the move could help push up or drop prices of consumer goods. This is also good for companies in the United States that depend on steel for production.
It is not yet known how large the quota for imports from Europe will be. This is because, with the exception of exceptions, higher taxes on steel and aluminum products have been in place since the Trump era.
How is China behaving?
In addition, the import is to be combined with CO2 emissions in steel production. The fact that Europeans and Americans firmly believe that production is pure means that Chinese goods are excluded from imports to the United States. EU Commissioner Vladis Dombrovsky tweeted that they are working together for a global agreement on stable steel and aluminum.
This agreement helps the states of the Atlantic Overseas community and eliminates the annoyance that exists in the relationship. And it takes the conflict with China to new heights. In his video message to the G-20 summit, Chinese President Xi warned against building a block: even small artificial circles or ideological lines can create barriers and increase barriers.
On the second day of the summit in Rome, it remains to be seen whether the representatives of the People’s Republic will react directly to the agreement between Europeans and the United States. In preparation for the climate conference starting in Glasgow, the topic is climate protection.
It is said to be a threat to national security
Elected President Donald Trump increased penalties in June 2018, and the amount of imports to date poses a threat to U.S. national security. Trump said at the time that it was about protecting one’s own business and American workers. This position is very popular, which is why fees are usually in effect.
This is another example of how Europe and the United States at least postpone trade disputes because, given the highly polarized mindset in the United States, they cannot be resolved in principle at present. Prior to that, a kind of ceasefire had already been reached in the controversy over state subsidies to aircraft manufacturers Airbus and Boeing.