British steel exports may lose the American market
The United States may maintain 25 percent tariffs on some or all of Britain's steel imports unless the country provides specific guarantees regarding the Port Talbot steel plant owned by Tata Steel. This is reported by The Guardian, citing sources.
The United States is concerned about the fact that Tata Steel imports raw materials from abroad.
Earlier this week, on the sidelines of the G7 summit in Canada, the parties announced a trade agreement, agreed on conditions for the import of British cars and aerospace products. However, negotiations on details that affect metallurgical and aluminum productivity are continuing.
At the moment, British steelmakers are still facing US tariffs of 25%, although they are significantly lower than the 50% steel duty imposed by the Trump administration on second countries. The UK Department of Business and Trade Policy said the parties had promised to make progress towards 0% tariffs on core steel products, as agreed in May.
The Trump administration is believed to be seeking additional guarantees for British steel exports, given that Tata Steel closed its blast furnaces in Port Talbot last year and is now importing raw materials from abroad ahead of the planned launch of an electric steelmaking furnace in 2027.
According to American import regulations, steel must be "smelted and bottled" in a particular country in order to be considered manufactured on its territory.
The company claims that its supplies come from other Tata Steel plants, mainly from the Netherlands and India.
According to the sources, American trade officials are considering granting an exception for Tata. However, they require a guarantee on the timing of the EAF launch and information on when the company will stop importing cheese from abroad. They are also interested in the origin of supplies and how Tata Steel can track their movement throughout the chain.
The British government hopes that the fact that the company does not import steel from China will convince the Americans to include all of the country's exports in the agreement. In addition, it is believed that Chinese ownership of British Steel (the Scunthorpe plant) is not a problem, as the government has taken over.
Prime Minister Keir Starmer will send his business adviser Varun Chandra to head a delegation to Washington next week. Officials are confident of reaching a final agreement in July.
Alasdair McDiarmid, assistant Secretary general of the Community trade union, said it was crucial to conclude the steel agreement as soon as possible. According to him, the most important thing is to achieve the complete exemption of all steel exports from the UK to the United States.