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Economy

US and UK sign agreement to remove Section 232 tariffs

The United Kingdom has achieved an agreement with the United States to remove Section 232 tariffs on steel and aluminium exports to the US, effective from 1 June 2022.

The United Kingdom has achieved an agreement with the United States to remove Section 232 tariffs on steel and aluminium exports to the US, effective from 1 June 2022.

The new tariff agreement allows historically based volumes of UK steel and aluminium products to enter the US market without the application of Section 232 tariffs. For semi-finished (wrought) aluminium products to qualify for duty-free treatment under the quota, they must not contain primary aluminium from the People’s Republic of China, the Russian Federation or the Republic of Belarus.

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"Commitment to rebuilding relationsships with vital allies"

The deal will also lift retaliatory tariffs on over USD500m worth of US exports to the UK. “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”, says a statement from the US Department of Commerce (DoC).

"Easing inflationary pressures"

DoC Secretary Gina M. Raimondo stated: “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 aluminium industries and workers by protecting manufacturing, as well as consumers by easing inflationary pressures in the US. By allowing for a flow of duty-free steel and aluminium 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.”

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