The new tariffs, which will be imposed by the Trump administration, will replace the existing 25% tariffs that came into effect on March 12. However, the announcement of the decision contradicts the agreement between the parties announced on May 8, which exempts the UK from the tariffs. The agreement has not officially entered into force, leaving UK steel producers in a state of uncertainty.
According to UK Steel, the US market is the second largest export market for the UK with a volume of around GBP 400 million. Aggravated tariffs on this market, which accounts for 9% of the UK's total steel exports to the US, could lead to order cancellations and new financial losses in the sector.
Gareth Stace, Director General of UK Steel, stated; "The US preparations to increase its steel tariff to 50% means another blow for the UK steel industry. We fear orders are being canceled; some products may now be on their way across the Atlantic. The trade deal announced just a few weeks ago is still not official and this is creating serious uncertainty in our industry."
Stace called on the government to urgently finalize and implement a deal to exempt UK steel imports from duty. "UK steelmakers should not be burdened with this heavy duty burden. Our aim is simply to continue to deliver quality steel to our customers," he concluded.
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