NEWS

The United States and the European Union agreed on Monday not to escalate their dispute over U.S. steel and aluminium tariffs, averting steep EU tariff hikes while the two sides launch formal talks on addressing excess global capacity largely centered in China.

The European Commission, which oversees EU trade policy, said on Monday it would suspend for up to six months a threatened June 1 doubling of retaliatory tariffs on Harley-Davidson motorcycles, American whiskey and motorboats, and refrain from slapping tariffs on more U.S. products from lipstick to sports shoes.

But the United States will maintain its tariffs of 25% on steel and 10% on aluminium despite the announcement. Those duties also apply to imports from China, India, Norway, Russia, Switzerland, Turkey, Japan and South Korea among others metals-exporting countries.

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