Rajesh Nair, CEO of Tata Steel UK, stated the 25% tariffs imposed by the US on steel and aluminum imports had a negative impact on British steel. US customers are turning to alternative suppliers to avoid a “customs war”, Nair noted.
Tata Steel, which operates Britain's largest steel mill in Port Talbot, exports about USD 100 million worth of steel to the US annually. Following these tariffs, the diversion of cheap steel to the UK market will also have a significant negative impact, Nair stated.
The Tata Steel CEO told the business and trade committee that existing customers have contacted the company to cancel orders, and in some cases have requested that Tata Steel compensate them for tariffs that should have been paid by US importers.
Nair stressed the need for greater protection for steelmakers across the country, he told the committee's inquiry into the UK government's forthcoming industrial strategy. “We need to act to protect the industry so that existing players can continue to do business and customers can get a fair deal. Some short-term steps should be taken instead of retaliatory measures.”
Unions Concerned About Tariffs
Alasdair McDiarmid, Assistant General Secretary of the Steel Producers' Union Community, also expressed concern about the impact of tariffs on the UK workforce. “We think tariffs are a terrible idea. It's a terrible idea for us as much as it is for the US,” McDiarmid stated, adding that workers are deeply concerned about their livelihoods and the future of their facilities.
McDiarmid also noted that workers are outraged by the change in trade policy and said that no one would like to be in this situation.
British Steel's Director of Procurement Allan Bell also made statements on the issue. Bell stated that the company supplies about 50,000 tons of steel to the US and that due to the US tariffs, this steel can no longer be sent to the US market. “We had to get out of those businesses immediately to compete with domestic producers,” Bell concluded.
Tata Steel and British Steel officials argued that the UK must act quickly and decisively to strengthen its trade defenses.
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