THE United States and the EU agreed Saturday to lift punitive tariffs on imported European steel and aluminum, ending a dispute that strained their trade ties since then-president Donald Trump imposed the levies three years ago.

The deal was announced by U.S. Commerce Secretary Gina Raimondo, who said it “allows limited volumes of EU steel and aluminum to enter the U.S. tariff-free.”

Increased EU retaliatory measures on iconic American products like Harley-Davidson motorcycles, Levi’s blue jeans and Kentucky bourbon — due to take effect Dec. 1 — will not now be applied, Raimondo said from Rome where she was attending the G20 summit.

EU trade commissioner Valdis Dombrovskis said in a tweet: “We have agreed with U.S. to pause our steel & aluminum ... trade dispute and launch cooperation on a Global Arrangement on Sustainable Steel & Aluminum.”

Trump in June 2018 imposed tariffs of 25 percent on steel and 10 percent on aluminum from several economies, including the European Union. He said he was acting on national security grounds.

The Europeans hit back quickly, with duties on tobacco, corn, rice and orange juice from the U.S., besides motorcycles and bourbon.

In June, as they announced a deal to end their dispute on subsidies to Airbus and Boeing, the U.S. and the European Union gave themselves until Dec. 1 to resolve the steel tariff issue.

“These industries were facing retaliatory tariffs of 50 percent,” Raimondo said of the likes of Harley Davidson. “No business can survive that. There are 1.7 million Americans supported by the distilled spirits industry. There are 5,600 manufacturing workers at Harley Davidson and all of their jobs are safer today because of this deal.”

The accord announced on the first day of the G20 summit in Rome does not specify the volume of European steel and aluminum that will be allowed in the United States duty-free.

“We expect that this agreement will provide some supply chain relief and help drive down some of those cost increases as we lift the 25 percent tariffs and increase volume,” Raimondo said in reference to pandemic-related disruptions to manufacturing and distribution of key products.

The deal specifies that all steel imported from Europe to the U.S. must be manufactured entirely in Europe, Raimondo said. She also said the accord creates a framework through which the U.S. and EU will take carbon intensity into account in future talks.(SD-Agencies)