Tariffs are imposed for a variety of reasons, including to encourage business owners to buy domestically for their production needs. But with inflation and elevated demand for key materials adversely affecting the supply chain, tariffs are being lifted on steel and aluminum deriving from other parts of the world.
In a joint statement issued by the governments of the United States as well as the United Kingdom, the nations announced they have worked out an arrangement that will ease tariffs on steel, aluminum and a few other products that are traded between the two countries. As of June 1, the United Kingdom will be permitted to import a predetermined amount of steel and aluminum into the United States without having to pay the costs associated with duties, Supply Chain Dive reported. In response to this largesse, the U.K. will rein in what tariffs it charges for U.S.-based products by $500 million.
Similar to gasoline, steel prices have been rising for awhile now and are climbing even more exponentially in recent weeks due to the war in Ukraine, which is a major steel producer.
Angelica Donati, who heads business development for the construction firm Donata SpA, told Bloomberg that certain kinds of steel are virtually impossible to obtain, which has exacerbated issues affecting the global supply chain.
"Corten steel, mostly produced in Ukraine, is completely unavailable at the moment," Donati told the media conglomerate. "This means that any site where corten is used — it is a major component for viaducts in Italy, for example — will inevitably have to stop production." Corten steel is also commonly used in street furniture fabrication and for signage.