Deal is struck to partially end Trump metals tariffs
THE UK Government has struck a deal with authorities in America to partially end the tariffs on British steel and aluminium imposed by former president Donald Trump.
The Department for International Trade (DIT) said the US had announced an “expansive removal” of section 232 tariffs, which have affected a number of UK metals exporters. The changes are expected to take effect on June 1.
In response the UK will suspend rebalancing measures on US products including whiskey, blue jeans and motorcycles, officials said.
International Trade Secretary Anne-Marie Trevelyan said the announcement was “good news for our steel and aluminium industries”, which she claimed had been “unfairly hit” by the tariffs.
“It means our manufacturers can now enjoy a high level of tariff-free access to the US market once again,” she said.
But Labour said the move was “long overdue”.
Shadow International Trade Secretary and MP for Torfaen Nick Thomas-Symonds said: “UK steel and aluminium manufacturers have had to face four years of punitive tariffs initially imposed by (Donald) Trump.
“Ministers have dithered and delayed, so finally getting these tariffs lifted is a welcome relief. The government now needs to make sure that this agreement comes into effect at the earliest opportunity.
“In their 2019 manifesto, the Conservatives promised a US trade deal by the end of 2022. Ministers need to get moving to secure a stable longterm trading arrangement with the US, and keep their promise to the public.”
The 25% tariff on steel and 10% tariff on aluminium was imposed by the Trump administration during a dispute with the European Union in 2018.
Ms Trevelyan previously said the tariffs had cost the industry more than £60m per year, and expressed her hopes for swift progress to resolve the matter.
The solution agreed by the UK and US will involve replacing section 232 tariffs on certain exports of steel and aluminium with tariff rate quotas.
Gareth Stace, director general of UK Steel, said: “I would like to congratulate the UK Government on behalf of the entire steel sector for its success in these hard-fought negotiations which have resulted in a hugely positive outcome for UK steelmakers.
“This deal is the culmination of months of dedicated work from Anne-Marie Trevelyan and her department, removing long-standing export barriers and opening up access to the important and high-value US steel market.
“The benefits of this deal will be felt by steel companies and their employees right across the UK.”
Director and co-founder of Caldicot-based Pro Steel Engineering Richard Selby said: “This is undoubtedly great news for the sector. Not only will it help existing exports we do, but it will make future work and projects even more prosperous and likely to happen. We previously
exported over $500,000 of product to the US, and look forward to seeing zero tariffs from 1 June, 2022.”
William Bain, head of trade policy at the British Chambers of Commerce, said: “The ending of the section 232 tariffs on UK steel product exports to the US in June is extremely welcome as businesses and consumers across the globe face unprecedented rises in trade and living costs. The revised US tariff rate quotas apply to steel melted and poured in the UK.
“People in the UK will also benefit from the ending of our rebalancing measures on products like US jeans too.
“Both governments now need to work with business to produce lasting solutions to how we improve global steel supply chains. That means considering what happens to steel imports into the UK and where these can be sourced from at acceptable cost for manufacturing firms.”