A proposed agreement to eliminate tariffs on UK steel exports to the United States has been placed on indefinite hold, according to the BBC. Currently, a 25% tariff applies to UK steel exports to the US, which account for 6% of the total UK steel export volume and 9% of its export value. A government spokesperson noted that the UK remains the only country to benefit from this 25% tariff, highlighting its reputation as a reliable source of high-quality steel.
In comparison, other countries face tariffs of 50%, positioning the UK competitively. Senior government sources believe there is still a potential path toward zero tariffs. In July, the government and industry had expressed optimism about a deal to reduce tariffs, marking a significant development at that time. Nevertheless, industry leaders described the original 25% tariff as “devastating” when it was first implemented.
Despite the setback, sources within the industry conveyed that the UK still holds a comparative advantage, given the heavier tariffs imposed on other nations. One industry representative underscored the importance of the UK government enhancing its trade defenses to ensure a sustainable market share for domestic steelmakers amid challenges posed by global overproduction.
The government reiterated its commitment to collaborate with US officials to secure certainty for UK industries and safeguard skilled jobs. However, negotiations have encountered obstacles, particularly concerning exports from Tata, the UK’s largest steel manufacturer, which has temporarily ceased operations at its blast furnaces pending the installation of new Electric Arc furnaces scheduled for completion in 2027.
The UK steel sector is presently facing substantial financial difficulties, prompting government intervention in operations of a Chinese-owned plant in Scunthorpe, along with the collapse of Liberty Steel plants in Rotherham and Stocksbridge into government control last month.
Source: https://www.bbc.com/news/articles/cj4y2gge7p1o?at_medium=RSS&at_campaign=rss