For the UK, punitive tariffs are now finally a thing of the past

Last week, the USA and the UK reached an agreement in the tariff dispute triggered by former US President Trump. The UK, otherwise a strategic partner, was also affected, as was the EU. In the USA 2018 special tariffs on steel and aluminum imports. Trump wanted to protect his own steel and aluminum industry according to the motto „America first“. In the UK and the EU, the reaction was to impose punitive tariffs on Harley-Davidson Motorcycles, Levis jeans and Tennessee whiskey with a punitive tariff of 25%, for Harley-Davidson this means a bottom line of 25% plus 6% import duty. In the second stage, punitive tariffs were threatened to be doubled in 2021.

Jo Biden restores the original status.

Trade volumes are to be brought back to the level before the 2018 dispute. The agreement in the UK could also serve as a template for the agreement between the EU and the USA. Although the issue is off the table for now, it has not yet been finally resolved, but there are already reports of initial talks at a political level on new free trade agreements.

The Harley-Davidson customer has not felt the economic impact of this process, as the motorcycle manufacturer has borne the additional costs. In general, prices are rising in all areas, even for companies, which has already led to price increases at Harley-Davidson this year. We can therefore be glad that the problem of punitive tariffs has been resolved for the time being, similar to the dispute between the aircraft manufacturers Airbus and Boeing.

Let's hope that the EU will reach an agreement with the USA in the same way, the chances are not bad.

Another article on the subject of punitive tariffs that might be of interest.