UK Steel welcomed the US decision to keep tariffs on UK steel imports at 25%, but said the US-UK agreement reached in May must be implemented as a matter of urgency to fully eliminate tariffs as well as uncertainty.
US President Donald Trump signed a decree on Tuesday that increases the tax on steel and aluminum products from 25% to 50%, starting on June 4 (see[b]Callanish[/b]passim). Contrary to the fears of British steel companies last week, when Trump first announced the doubling of tariffs, the tax on British steel remains unchanged to ensure the implementation of the Economic Prosperity Agreement between the United States and Britain, signed on May 8.
Although the liberation of the UK is a vote of confidence in the abilities of British steel companies. For continued supplies to the U.
S. market, this also creates additional uncertainty, which is disruptive, UK Steel says.
"Maintaining tariffs of 25% will have a positive impact on water supplies, which, as we feared, would be subject to tax increases. However, uncertainty remains about the timing and final tariff rates, and now customers from the United States will doubt whether they should even take the risk by ordering in the UK," said Gareth Stace, CEO of the association.
"The United States and the United Kingdom must urgently implement the May deal in order to eliminate tariffs completely. At an already difficult time for our steel industry, with oversupply of global supply and weak demand, we must continue to work together to maintain sales levels in our second most important export market," he adds.
On or after July 9, the United States is likely to finalize an agreement to change tariffs on British steel with duty-free quotas or decide to raise tariffs to 50% for the UK.
The UK should also provide additional protection for its steel market, as there is evidence that trade is shifting towards the UK after the EU has strengthened its trade protections, says Stace. "We must not lose sight of our domestic market while fighting to stabilize exports to the United States," he concludes.
Adam Smith Poland
kallanish.com
