‘Body blow for UK steelmakers’ facing new US tarrifs

UK steelmakers are expecting to face a new 50% import tax next week after President Trump hiked his tax on all steel and aluminium entering the USA. This is set to replace the 25% import tax the president slapped on imports earlier this year, which came into effect on 12 March. Despite the Prime Minister and the President Trump’s agreement that UK steel imports would no longer face an import charge - announced on 8 May - the original 25% import tax has remained in place while officials iron out the detail of the decision.

UK Steel, the trade association that represents the UK steel industry, understands the new 50% charge will therefore likely affect all UK steelmakers’ US imports from this Wednesday (4 June). The USA is the UK’s second most important export market, worth around £400 million and totalling 9% by value of exports, therefore it is critical that this new steel tariff does not apply to UK steel imports to the USA.

Torrid time
UK Steel director-general Gareth Stace said: “The announcement that US steel tariffs could jump up to 50% on Wednesday is yet another body blow for all UK steelmakers in this torrid time. UK steel companies are this morning fearful that orders will now be cancelled, some of which are likely being shipped across the Atlantic as we speak.

“The deal that the Prime Minister and President Trump struck just a few short weeks ago is yet to be finalised, so this doubling of tariffs plunges the UK steel industry further into confusion. Uncertainty remains as to whether and when our second biggest export market will be open for business or is being firmly shut in our faces.”

He concluded: “UK Steel is now pressing the Government to finalise the agreement to eliminate UK steel import tax and for it to come into effect urgently. UK steelmakers should not have to shell out for this new steep hike in US steel tariffs. All we want is to continue producing the steel our US customers value so highly.”