The agreement reached between the United States and the European Union on metal tariffs will help to offset inflationary effects on the prices of American goods, according to Commerce Secretary Gina Raimondo.
“In America, steel prices have gone up three to four times in the past 12 months -- this is going to help all those supply-chain issues,” Raimondo said in an interview Tuesday. “Steel is in cars and trucks, dishwashers, washing machines -- we’re going to see prices go down on account of relaxing the tariffs, and that’s just going to help with inflationary pressures and some of the bottlenecks in the downstream supply chain.”
Over the weekend, the transatlantic allies reached a tariff-free trade agreement, which they hope to leverage into a broader global agreement that would penalize countries that fail to meet low-carbon targets for steel and aluminum exports.
The United States agreed to remove the duties it imposed on EU steel and aluminum exports up to a certain threshold, with anything above that subject to additional tariffs.
The EU will also suspend its retaliatory duties, effectively ending punitive measures on up to $10 billion in goods from each other.