U.S. and UK Move to Resolve Section 232 Tariff Dispute
The United States and the United Kingdom have reached an agreement that will end both British steel import tariffs and export tariffs on American bourbon, motorcycles, and more.
A four-year dispute between the nations has impacted duties on a range of materials. The U.S. had imposed strict tariffs on British steel and aluminum under Section 232 of the Trade Expansion Act of 1962 – a retaliation against rising import volumes. Recent successful negotiations mean the tariffs on both sides will phase out by June 2022.
Controlling UK Steel and Aluminum Import Volumes
The removal of these tariffs, according to reports from Reuters and others, hinged on import volume management.
U.S. policymakers originally initiated the tariffs in an attempt to help domestic steel aluminum manufacturers. The new resolution keeps that in mind with a specific yearly import volume allotment before a 25 percent duty activates. Reports state that U.S. importers can bring in up to 500,000 tons of UK steel without tariffs. Similar parameters will be in place for aluminum before its 10 percent duty resumes.
Uniting to Face China
The Biden Administration has prioritized resolving trade disputes with allies to better focus on challenging its main trade adversary: China. The latest resolution with the UK follows similar compromises reached with the European Union. A persisting focus on China follows the path laid by the previous administration.
Get Ready for New UK Metal Import Rules
Whether you import metals or export bourbon, new tariff policies between the U.S. and UK may impact your supply chain operations. The new rules will take effect June 1, 2022 – reach out to Scarbrough International to ensure proper tariff compliance and find potential savings before then.