The Biden administration this weekend reached a deal with European Union officials to roll back some of the Trump-era tariffs on aluminum and steel imports, resolving one of the more bitter disputes between the U.S. and other Group of 20 nations.
The deal allows “limited volumes” of steel and aluminum products from the European Union to enter the United States without tariffs. In exchange, the European Union will drop its retaliatory tariffs against U.S. goods, including brands like Harley-Davidson motorcycles and Kentucky bourbon.
The European Union was scheduled to raise tariffs to 50% on U.S. products on Dec. 1.
As part of the deal, the U.S. and the European Union pledged future negotiations on taking the “carbon intensity” levels in steel and aluminum into account in future trade talks.
Mr. Biden hailed the deal as a victory for the U.S., saying it lowers costs for consumers and ensures the American steel industry will stay competitive for decades to come by creating good-paying union jobs.
“These arrangements will lift up U.S. aluminum and steel, which is among the greatest steel in the world — that is somewhat prejudiced on my behalf — incentivize emission reductions in one of the most carbon-intensive sectors of the global economy;\, restrict access to our markets for dirty steel from countries like China, and counter countries that dumped steel in our markets, hammering our workers,” Mr. Biden said Sunday.
European Commission President Ursula von der Leyen said the deal marks “a milestone in the renewed EU-U.S. partnership.”
“And now we have found a solution on EU-U.S. steel and aluminum trade. I thank you, Mr. President, Joe, for your announcement that the United States will remove … tariffs on U.S. steel and aluminum up to previous trade levels. This will alleviate a major part of the existing trade irritants,” Ms. von der Leyen said at a joint appearance with Mr. Biden.
“I am pleased to announce that the commission will also propose to suspend the tariffs that we had introduced. I’m also pleased to join President Biden in announcing the pausing of our dispute on this issue in the World Trade Organization,” she said. “This is a major step forward in our renewed relationship and many thanks for that.”
Former President Donald Trump in 2019 imposed a 25% tariff on steel imports and a 10% tariff on aluminum to boost those struggling industries. The move drew strong opposition from U.S. manufacturers using steel and aluminum, who alleged the tariffs would increase consumer prices and cost jobs.
However, labor unions, including those largely supporting Democrats, at the time praised the move and said it protected U.S. labor from foreign competition.
The Economic Policy Institute, a left-leaning think tank, concluded that the tariffs created more than 3,000 jobs in the U.S. steel industry.
A senior White House official dismissed the idea that reducing the tariffs could cost Mr. Biden support among those groups.
“This deal is just the first deal that actually gets something in exchange for U.S. steel companies and its workers,” the official told reporters. “Right now, our steel companies are the cleanest in the world and they don’t get any credit for that. And this deal will turn that sort of low carbon intensity across all modes of production into a source of competitive advantage.”
In a statement, Harley-Davidson celebrated the news, calling the agreement an “important course correction in U.S-E.U. trade relations.”
“Today’s news is a big win for Harley-Davidson and our customers, employees, and dealers in Europe,” CEO Jochen Zeitz said in a statement. “We are excited that this brings an end to a conflict that was not of our making and in which Harley-Davidson had no place.”
The Distilled Spirits Council, a trade group that represents bourbon distillers and others, said “the end of this long tariff nightmare is in sight for U.S. distillers.”
“With the removal of these EU tariffs, we are energized and ready to ramp up our American Whiskey promotions in the EU to re-introduce America’s native spirits to EU consumers and resume a great American export success story,” the group said in a statement.
• Jeff Mordock can be reached at jmordock@washingtontimes.com.
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