The UK will revise its tariffs on US products like whiskey, tobacco and motorcycles in a bid to get Joe Biden to drop Trump-era tariffs on British steel.
International Trade Secretary Liz Truss announced today that she will launch a six-week consultation with UK businesses to consider “rebalancing measures” that could see some of the tariffs removed.
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Truss said she wanted to “defuse trade tensions” so that “the US and UK can move on to the next phase of their trade relationship.”
UK tariffs on US goods were in retaliation for Donald Trump’s Section 232 tariffs on UK steel and aluminum.
Trump’s White House says trade barriers are necessary for national security reasons, however, the policy was widely seen as part of the former president’s attempt to revive the manufacturing industry in the United States.
âWe now have the power to shape these tariffs to reflect UK interests and fit our economy,â Truss said.
âThe UK will do whatever it takes to protect our steel industry from illegal tariffs which could undermine UK industry and hurt our businesses.
âUltimately, however, we want to defuse these disputes so that we can move forward and work closely with the United States on issues such as WTO reform and tackling trade practices. unfair non-market economies. “
Truss was successful in convincing the United States to agree to suspend U.S. tariffs on Scotch whiskey and other products earlier this year, which is a big step towards de-escalating trade tensions.
City AM exclusively reported in March that Truss and his allies believed this step could allow the United States to remove other tariffs from Trump.
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The resolution of the trade dispute with the United States over steel tariffs could mark another step for the United Kingdom and the United States to conclude a free trade agreement.
It is believed that at least half of the deal has been done, but there are a number of sticking points around US agricultural exports and the current UK tax on digital services.