U.S., E.U. reach deal on steel and aluminum tariffs going into final day of G20
ROME — Ahead of the second day of the G-20 summit, the Biden administration announced it had reached a deal to roll back tariffs on billions of dollars of European steel and aluminum, easing a trade war that had strained the trans-Atlantic relationship since the Trump administration.
In a briefing with reporters, Commerce Secretary Gina Raimondo said the agreement between the United States and European Union allows "limited volumes of E.U. steel and aluminum to enter the U.S. tariff-free." The E.U. in return will lift retaliatory tariffs on American goods and will not go forward with a new wave of tariffs they had planned to implement on Dec. 1.
U.S. Trade Representative Katherine Tai said the agreement between the U.S. and E.U. delivered on President Joe Biden's "mission to turn the page on past disputes and begin a new chapter of enhanced trans-Atlantic relations."
Biden administration officials argued that the deal would protect U.S. workers, lower costs for American consumers and address supply chain issues. Raimondo also said that the deal took into consideration "carbon intensity" and would allow for the manufacturing of steel and aluminum that is "significantly cleaner" compared to what is produced in China.
Biden is scheduled to attend a one-on-one meeting Sunday morning with President Recep Tayyip Erdogan of Turkey, before participating in the second plenary session of the G-20.
In the afternoon, Biden is expected to host an event on "global supply chain resilience through the pandemic and recovery," according to his official schedule.
The coronavirus pandemic upended global supply chains, as factories shut down and consumer behavior dramatically changed overnight. Supply chain problems have persisted as many Western countries have begun to emerge from the pandemic eager to return to more regular spending habits, while some countries like China remain under Covid restrictions and unable to meet demand.
The imbalance in supply chains has led to a shortage of goods — everything from computer chips to kid’s toys and running shoes — as well as an increase in prices for consumers that has threatened to delay the post-pandemic economic recovery.
At the conclusion of Sunday’s meeting, heads of state will release a joint communique, the statement that G-20 leaders issue at the end of the summit outlining their priorities and actions they agreed to take. G-20 members are expected to formally endorse the 15 percent global minimum corporation tax in Sunday’s communique.
The joint communique is not legally binding, but rather relies on “the good behavior of others,” according to Jeff Dayton-Johnson, dean of the Middlebury Institute of International Studies.
“It is pretty easy to be skeptical about whether or not [communiques] are effective,” Dayton-Johnson said. “But if the G-20 makes a statement that commits member countries to more cooperation on global taxation, then there’s plenty of political forces in G-20 countries that can keep the pressure on their governments to adhere to those agreements.”
Biden plans to hold a press conference Sunday evening before traveling to Glasgow, Scotland for the United Nations climate summit, known as COP.
