US and EU ends dispute over steel and aluminium tariffs, take aim at China
|“The United States and the European Union on Sunday ended a dispute over steel and aluminum tariffs and said they would work on a global arrangement to combat ‘dirty’ production and overcapacity in the industry,” said Reuters.
The news also cites the positive development as a challenge for China as it produces over 50% of the global steel and is accused of creating overcapacity, which in turn challenges the survival of the EU and the US steel.
Key quotes
The United States will not apply Section 232 duties imposed by former President Donald Trump and will allow duty-free importation of steel and aluminum from the EU at a historical-based volume.
The EU will suspend tariffs on U.S. products like whiskey, power boats and Harley-Davidson motorcycles, imposed in retaliation for the steel and aluminum tariffs.
The two sides said they will work to restrict access to their markets for "dirty steel" and limit access to "countries that dump steel" in their markets, both of which contribute to worldwide oversupply.
The United States also published a consultation that brought on board what it called "like-minded nations" like Japan and Britain on issues related to steel and aluminum, with a focus on the impacts of overcapacity on the global steel and aluminum markets.
FX implications
The news offers a positive start to the market’s risk appetite as the S&P 500 Futures rise 0.30% by the press time of early Monday morning in Asia.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.