UK-US tariff resolution creates trade opportunities for steelmakers and whisky makers
From 1 June 2022, UK steel and aluminium exporters will no longer have to pay tariffs on material exports to the US, allowing some quantities to be exported duty-free. This is the first time since 2018 that UK steel and aluminium exporters will be able to export duty-free to the US. The resolution is another major move by the Department for International Trade(DIT) to continue to enable businesses to break down trade barriers and help UK businesses access the benefits of free trade.
The removal of the tariff has been hailed as a huge victory for British steel manufacturers and removing the tariff will also mean that it will be cheaper to import US products, reducing costs for UK consumers and businesses. On the other hand, this will create brilliant opportunities forBritish businesses, supporting jobs and driving economic growth. The removal of tariffs brings new business opportunities for companies across the supply chain, resulting in the employment of 80,000 people in the supply chain.
At the same time, the UK will end rebalancing measures on a variety of US products, including whisky, Levi's jeans and Harley-Davidson motorbikes. In the case of whisky, for example, the removal of tariffs onAmerican whisky has made it possible for American producers to ship bourbon to the UK and launch their brands in the country, boosting investment and job creation in the UK by American whisky producers. On the other hand, the UK whisky industry is booming, as evidenced by the fact that companies are making inroads into the bourbon market. Last year, whisky exports grew by almost 20%to £4.6 billion - with over £820 millions of this going to the US, making it the largest food and drink export in the US and internationally.