The United Kingdom's trade deal with the United States may mark the beginning of a reduction in Article 232 import tariffs and steel prices in the United States.
US President Donald Trump and British Prime Minister Sir Keir Starmer spoke about the trade deal, which will lift the 25% tariff on British steel, at a press conference yesterday (May 8). It would also reduce the tariff rate on British-made cars from 25% to 10% per 100,000 units per year, after which a tariff of 27.5% would be applied. Rolls-Royce jet engines will also be sold for free.
President Trump said that in return, the UK would eliminate its tariffs on American beef, ethanol, sports equipment and other goods. other products, as well as the purchase of Boeing aircraft for 10 billion US dollars in accordance with the agreement.
It has been more than 50 days since President Trump imposed 25% import duties on steel, aluminum, and automobiles, as well as a deal between the United States and one of its closest allies. However, the details of the US-UK trade deal, which remains the subject of further negotiations, are limited.
Reducing the effectiveness of article 232’
However, MEPs Laura Hodges, an international analyst of the U.
S. steel market, said the deal could mark the beginning of a series of trade agreements that would reduce the impact of tariffs on U.
S. steel prices.
"The effectiveness of the Section 232 steel tariffs is being reduced again due to the trade agreement with the UK," Hodges said.
"It is reported that the United Kingdom and the United States will now impose a 0% tariff on bilateral steel trade. This is the beginning of the benefits that undermined Section 232 tariffs in 2018/2019."
She added: "Steel prices in the United States are significantly higher than in the rest of the world, and are currently elevated only because of the tariff. If the tariff decreases, our prices will decrease in the near future.
"We already expected prices to decline this summer due to lower-than-expected demand from manufacturing and construction in the United States. And we need more details, the new deal puts a risk on our short-term price forecast."
MEPs, we have hot-rolled steel prices increased by almost 40% in the first quarter. Domestic producers have raised steel prices amid expectations of a reduction in supplies. Importers, meanwhile, have accelerated purchases in an effort to beat the new import tariffs.
In a recent speech by MEPs on a podcast dedicated to the U.
S. market minutes earlier, Hodges stated that U.
S. steel imports have not declined since the reintroduction of the 25% Section 232 tariffs. According to her, importers purchase inexpensive materials from non-traditional sources, but after that,
