The United States and European Union have recently agreed to lift punitive tariffs on imported steel and aluminum. According to Reuters, the president of the European Commission, Ursula von der Leyen, believes that this decision will ease tensions in the trading relationship between the two countries.
"Biden and I reached an agreement to suspend the tariffs on steel & aluminum, and to work together on a new Global Sustainable Steel Arrangement. Together, we deliver for our citizens and for the climate," Ursula von der Leyen tweeted. She also added that the US would gradually remove tariffs on EU steel and aluminium that were imposed by Donald Trump's administration in 2018.
"The Global Arrangement will seek to ensure the long-term viability of our industries, encourage low-carbon intensity steel and aluminum production and trade, and restore market-oriented conditions. Defusing yet another source of tension in the transatlantic trade partnership will help industries on both sides. This is an important milestone for our renewed, forward-looking agenda with the US," the EU Commission stressed.
The so-called global deal is aimed at promoting "green" steel and aluminum production. Each country will be able to join the deal, including China. Notably, the EU and the US have more than once blamed Beijing for dumping dirty steel in markets. "This initiative should raise the production of aluminum and steel in the United States, which produces the best steel in the world," Biden noted.
Bernd Lange, the head of the European Parliament's Committee on International Trade (INTA), pointed out that the US had only partially lifted tariffs on imports of steel and aluminum from the European Union. Lange believes that the US should remove all existing duties in order to reach the indicated goals quicker. However, he assumes that even partial cancellation of tariffs is a big step towards de-escalation of the trade conflict and further cooperation.
