European steel producers are hoping that global trade tensions may ease after Britain becomes the first country to conclude a trade agreement with the United States.
The United States will lift its 25 percent Section 232 tariff on imports of British-made steel as part of an agreement unveiled on May 8. In addition, it will reduce the tariff on automotive products to 10% for imports of 100,000 vehicles, after which a tariff of 27.5% will be charged. However, few details remain about the new terms or their effective date.
- This article first appeared in the journal MEPS International Review of European Metallurgy. The monthly review contains steel prices, indexes, comments and forecasts for Belgium, France, Germany, Italy, Spain and the United Kingdom. Contact the MEPs for detailed information on how to subscribe.
On May 12, a 90-day reduction in import tariffs between the United States and China gave another hope for de-escalation of trade restrictions. Under the agreement, the United States will reduce its tariff rate on various Chinese goods (excluding steel) from 145% to 30%, and China will reduce its rate from 125% to 10%.
US trade deficit
European Parliament respondents in the EU are not optimistic that the European Commission will quickly negotiate a British-style agreement to reduce import tariffs in the United States in the near future. In 2024, the UK accounted for only 240,395 tons of the 26.2 million tons of steel imports to the United States, while the United States imported 3.89 million tons of materials of European origin. Eurofer data shows that steel exports from the EU to the US resulted in a trade surplus of about 2.6 million tonnes.
Although negotiations are continuing, plans are being developed for an unsuccessful outcome of the negotiations between the EU and the United States. The European Commission has launched public consultations on a list of imported steel from the United States, against which EU countermeasures may be taken. He is also consulting on possible restrictions on the export of scrap steel from the EU to the United States.
European steel producers will strive to maintain access to the US market. The MEPs surveyed report a further decline in demand across Europe this month. The high-quality wire rod for drawing was the only product that was supervised by the MEPs and which did not show a decrease in the average price due to the sharp decline in prices.
Central to the UK's steel trade deal with the United States is an agreement on the two countries' approach to trade protection. The White House documents state that the United States "recognizes the economic security measures taken
