U.S., E.U. agree to trade truce on steel, aluminum imports
$Dow Jones Industrial Average(.DJI.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ The U.S. and the European Union have announced a deal at the G20 summit in Rome to ease U.S. tariffs on steel and aluminum totaling more than $10B of E.U. exports each year, removing one of the most significant trade disputes from the Trump administration's levies imposed in 2018.
U.S. Commerce Secretary Gina Raimondo said the arrangement will maintain the tariffs but allow limited amounts of European imports to enter the U.S. free from tariffs while the E.U. will drop retaliatory tariffs.
U.S. officials said the deal will ensure that steel entering the U.S. from Europe is entirely produced in Europe.
American Iron and Steel Institute head Kevin Dempsey said the agreement will "prevent another steel import surge that would undermine our industry."
Potentially relevant steel and aluminum tickers include $United States Steel(X.US$ , $Nucor(NUE.US$ , $Cleveland-Cliffs(CLF.US$ , $Reliance(RS.US$ , $ArcelorMittal SA(MT.US$ , $Steel Dynamics(STLD.US$ , $Alcoa(AA.US$ , $Century Aluminum(CENX.US$
The deal was praised by $Harley-Davidson(HOG.US$, one of the U.S. companies that was hit hardest by E.U. retaliatory tariffs; $Levi Strauss & Co.(LEVI.US$ jeans and bourbon whiskey were among other targets of the retaliatory measures.
Climate change is another focus of the summit, which will set the tone for global talks on climate in Glasgow, Scotland, that immediately follow the Rome meeting.
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Kieron Morley : The only reason Trump got on Europe's case was the Chinese started to dump their subsidized surpluses through Europe once Obama raised steel tariffs on China in early 2016 (yes Obama started the tariff war with China not Trump). Note the part of the agreement that ensures European Steel is made in EUROPE. This is why that's in there.
William Paul : The people who are promising that no steel from China gets imported via this are the same people who assured everyone of the orderly withdrawal from Afghanistan. US manufacturing gets the shaft of course, as usual. Harley Davidson sells what, 5-10% to EU? Joe from Scranton Building Back Better.
Brandon Golden William Paul: Things were going good, why change them. Let EU ride BMWs
John Dow Brain Gomes: Didn't they move production due to the excess cost of goods?
John Dow : Europe is having a huge energy crisis. I doubt they will be able to produce steel or aluminum cheaper than US.
wild horse : Do your internet searching guys, it's 3.3MLT of product before tariffs kick back in. Then I believe another 1MLT at a lower tariff rate, then anything above that is at the previous tariff rate.
CLF CEO already released a statement that was generally supportive of the measure. Seems X and CLF management are on board enough to let it ride for now.