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UK Steel Industry Seeks Clarity on Timeline for US Tariff Removal
Date:2025-05-12 17:44:10View:149Tags:Stainless Steel Supplier

The UK steel industry is urging the government to clarify when the recently announced removal of US steel tariffs will take effect, following last week’s trade agreement with the United States, Reuters reports.

 

On May 8, the British government confirmed a deal with the US to eliminate the 25% tariff on UK steel exports, effectively reducing it to zero. The move was welcomed by steelmakers, who see the agreement as essential to maintaining access to the US market.

 

However, the details released after the announcement revealed that key conditions and quotas still need to be finalized. Industry representatives say they are uncertain about when the tariff changes will be implemented and what the exact requirements will be.

 

According to the agreement, the UK must meet specific US conditions related to the security of the steel and aluminum supply chain and disclose ownership structures of relevant production facilities. In exchange, the US will establish a Most Favored Nation (MFN) quota for UK steel and aluminum products, including certain derivatives.

 

Chrysa Glystra, Director of Trade and Economic Policy at UK Steel, emphasized that many aspects of the deal remain undefined. “The sector currently has no idea when the agreement will take effect or what the implementation timeline looks like,” she stated.

 

While UK Steel welcomed the progress made on May 8, it also cautioned that US steel tariffs have broader global implications. Trade diversion and import pressure could intensify in the UK market, potentially displacing local producers.

 

The organization is awaiting further details to understand whether the UK government has agreed to strengthen domestic trade protections under the agreement. It also raised concerns that the market share of domestic producers, currently at 35%, could decline if safeguards are not reinforced.

 

UK Steel stressed the urgent need to expand protective quotas, similar to actions taken by the European Union, and to establish a robust trade defense mechanism as soon as possible.

 

Meanwhile, Philip C. Bell, President of the US-based Steel Manufacturers Association (SMA), offered to assist with negotiations on alternatives to Section 232 tariffs under the UK-US framework. The SMA emphasized that each country’s case under Section 232 should be evaluated individually to ensure fairness for the American steel industry.

 

The new limited trade agreement, announced last week, maintains the overall 10% US tariff on UK exports. However, it reduces the 25% tariff on steel to zero and lowers the tariff on British automobile exports from 27.5% to 10%, applicable to up to 100,000 vehicles.

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