US President Joe Biden says America and the European Union (EU) have agreed to do a carbon-based arrangement on steel and aluminium.
In a statement at the G20 summit in Rome, he said the US and EU have "reached a major breakthrough that will address the existential threat of climate change" while also protecting American jobs and American industry.
He says it will usher in a "new era of transatlantic cooperation", which removes tariffs on EU and a range of American products.
Ursula von der Leyen, president of the European Commission, said they had agreed to suspend the tariffs on steel and aluminium and to "start work on a new, global, sustainable steel arrangement".
She says "we must address the carbon intensity of the industry" and address problems of over-capacity.
"It will be a major step forward in achieving carbon neutrality," she adds.
"This is a major step forward in our renewed relationship."