The tariff dispute was a major point of conflict between the US and the EU.
(Photo: dpa)
Washington The US and the European Union have settled a diplomatic dispute over punitive tariffs from the era of ex-President Donald Trump. A corresponding agreement had been reached, said the national security advisor in the White House Jake Sullivan, the trade representative Katherine Tai and trade minister Gina Raimondo on Saturday. In 2018, the previous government under Trump imposed punitive tariffs on European steel and aluminum. The reason: The foreign products of the US allies posed a threat to US national security.
The Europeans and other traditional partners were outraged by the maneuver for which the Trump administration relied on Article 232 of a US trade law. For their part, many states responded with tariffs on US-made products such as peanut butter, jeans, bourbon whiskey and motorcycles.
But now an agreement has been reached, according to which the EU will suspend its retaliatory tariffs on American goods, explained Raimondo. The deal will ensure “that all steel that reaches the US via Europe is produced entirely in Europe”.
Sullivan, Tai and Raimondo added, however, that the duties under Article 232 would not be entirely eliminated. According to the agreement, a certain amount of European steel and aluminum can now be imported into the USA duty-free. In addition, both parties would suspend the matter pending before the bodies of the World Trade Organization (WTO), they said.
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The retaliatory tariffs of the EU on US products should have increased before the end of the year, said Raimondo. This has now been averted with the agreement. At the same time, it will ensure that no steel or aluminum products can be imported from the EU, some of which come from China. The US accuses Beijing of subsidizing domestic industry and creating unfair competition with artificially low prices.
As early as June, the EU and the USA suspended punitive tariffs on products such as airplanes, wine and ketchup until 2026. The agreement is intended to make it possible to calmly resolve the dispute over state aid for the US aircraft manufacturer Boeing and its European rival Airbus. It had been escalated by Trump with the introduction of punitive tariffs on imports from the EU. The Union reacted at that time with special levies on imports from the USA.
Resolving the tariff dispute is seen as an important step in US President Joe Biden’s efforts to reverse the political legacy of his predecessor Trump. At the beginning of his term in office, Biden had set the goal of cementing the relationship between the USA and Europe.
The tariff dispute harmed European producers and increased steel costs for American companies. In addition, the stated goal of Trump to create jobs in steelworks was not achieved.
More: The US and the EU want to work together more closely in the framework of the new Trade and Technology Council. It deals with topics such as climate, trade and clean technology.