The United States and European Union Reach Deal to Remove Tariffs that Harmed American Agriculture
The Biden administration recently announced it reached an agreement to roll back tariffs on European steel and aluminum imports, Modern Farmer reports, a move welcomed by American agriculture following years of damage wrought by the trans-Atlantic trade war. Beginning in 2018, the Trump administration levied a slew of tariffs against many of the United States’ trading partners, including Mexico, Canada, China, and the European Union. With the E.U., former President Donald Trump slapped a 25 percent tariff on steel imports and 10 percent on aluminum, citing unfair trade practices; unsurprisingly, the bloc retaliated with 25 percent duties on a range of imports that would squeeze American farmers, including bourbon, orange juice, and peanut butter. Together with tariffs levied by China and others, the result was over $26 billion in promised bailout payments. Although the terms of the recent deal allow some of the protections to remain in place, The New York Times reports that European imports will operate under a “tariff rate quota,” where larger volumes of imports result in higher tariffs. Meanwhile, the E.U. has agreed to lift its retaliatory duties. Beyond a thaw in global relations, the Biden administration believes easing tariffs could also help alleviate supply chain issues in the United States.es.