March 24 2022

United Kingdom and United States Announce New Tariff Agreement on Steel and Aluminium Products

Source: IBFD Tax Research Platform News

US Trade Representative (USTR) Katherine Tai and US Secretary of Commerce Gina Raimondo issued a 22 March 2022 statement announcing a novel tariff agreement with the United Kingdom, which will allow an increased volume of UK steel and aluminium products to enter the US market without having the section 232 steel tariffs applied to them (see Note).

The agreement is also designed to counter unfair Chinese trade practices. Additionally, the deal will lift tariffs on over USD 500 million in US exports to the United Kingdom including but not limited to consumer goods, distilled spirits and agricultural products.

USTR Tai and UK Secretary of State for International Trade Anne-Marie Trevelyan issued a joint statement, also on 22 March 2022, on their shared commitments, including:

  • increasing dialogue between small and medium enterprises (SMEs) in the United States and the United Kingdom;
  • building on the new G7 Digital Trade Principles during the United Kingdom's presidency of that organization;
  • establishing more durable supply chains;
  • supporting environmental protection and creating incentives to decarbonize the economy;
  • protecting labor rights and combatting forced labor globally; and
  • addressing third party market distorting practices.

US Senate Finance Committee Chair Ron Wyden (D-OR) also issued a 22 March 2022 statement commending the announcement, stating that "[r]esolving the steel and aluminum tariffs with the U.K. will strengthen America's hand against China and Russia and help ensure American workers are competing on a level playing field."

Note: Former US President Donald Trump imposed a 25% tariff on steel imported to the United States, with exemptions for Canada and Mexico, under section 232 of the Trade Expansion Act of 1962.