UK industry associations welcomed the US decision to eliminate 25% of import duties on steel and aluminum imports from the UK as part of a landmark bilateral free trade agreement announced on May 8.
The agreement, presented in separate statements from the US and UK governments, is expected to provide additional impetus to the UK steel industry, which continues to suffer from low margins arising from weak demand, high production costs and a highly competitive import market.
In a statement released shortly after the agreement was announced, UK Steel thanked the UK government for its persistence in reaching an agreement that would allow UK steel exports to the United States to resume.
According to UK Steel, the UK exported about 180,000 tons of semi-finished and finished steel to the US, accounting for approximately 7% of the UK's total steel exports.
While acknowledging that the removal of tariffs offers some respite for the industry, UK steel warned that US duties on the rest of the world still posed a threat to UK steel producers of potential trade links and increased import pressure.
"This deal will offer major relief to the UK steel sector at a time when it is struggling with numerous other challenges, not least global overcapacity, high energy prices and weak demand," said UK Steel CEO, Gareth Stace.
"The impact of US tariffs on steel is not limited to UK exports, but also the detrimental effects of a reorientation of trade to other markets. Trade is strengthening the UK's defense, so it is also very important," he said.
