The report from Business Times states that the four-year dispute was concluded this past Tuesday (March 22nd), with America’s Commerce Secretary Gina Raimondo and Trade Representative Katherine Tai emphasizing that the deal would bring relief to American inflation, “where consumer prices have hit their highest level in 40 years.”
So what does this trade deal entail for Britain? A whole lot of strictures set in place to support US-UK dealings – and that means cleaning up certain areas that China may have had previous access to:
Around 500,000 tonnes of imported steel are allowed from Britain per year, tax/duty-free (anything over that gets a 25% tariff).
Aluminum importers need to show the material’s raw origin (to make sure it doesn’t come from China).
The financial records of Chinese-owned UK steel companies MUST be audited“to assess influence from the People’s Republic of China government, and then share them with the United States” (and likely also to make sure deals – under-the-table or otherwise – aren’t happening against the current regulations). *This last requirement will apply first to British Steel, acquired by China’s Jingye Group in 2020*
“The pact, which comes after Raimondo met with Britain’s trade minister, Anne-Marie Trevelyan, also will end Britain’s retaliatory tariffs on iconic American goods, including Harley-Davidson motorcycles, bourbon whiskey, Levi Strauss blue jeans, and cigarettes,” continues the report.
…So Britain wants more UK-based Harley riders that drink bourbon, wear Levi blue jeans, and smoke? Crushing on the colonies’ traditional aesthetic is ‘the new black,’ it seems…
All jokes aside, Britain’s no major steel supplier to the colonies. With the 500,000 tons stated above already exceeding the country’s typical averages (and the EU and Japan quotae sitting at 4.3 million tons and 1.25 million tons after reaching similar deals with the US), we’re anticipating an interesting year as material percentages play out.
Stay tuned – these tariff deals have become increasingly more common, and we also anticipate the Section 232 tariffs to be removed from more countries as the Russo-Ukrainian War plays out and potential steel shortages are avoided.
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Drop a comment below letting us know what you think, and as always – stay safe on the twisties.