Saturday October 1, 2022

What people are reading now:

The UK Steel Industry Braces for Slump in Trade as the US Reduces Tariffs on the EU

Author: Exports News
Mar 25, 2022
2 min read
941
0
941
0
Mar 25, 2022
2 min read
The UK Steel Industry Braces for Slump in Trade as the US Reduces Tariffs on the EU

Trade relations between Europe and the US, which deteriorated during the previous American presidential term, are regaining color. But the UK, which left the European Union (EU) after Brexit, is becoming a collateral victim at times because of this improvement in EU-US relations.

The Current Situation

The UK steel industry is preparing for an immediate drop in trade from the start of 2022, while EU countries will enjoy a 25% price advantage by selling into the American market.

In fact, the EU and the US have reached a deal to remove tariffs on a quota of steel and aluminum imports from the bloc into the US beginning January 1st. However, tariffs will remain on all British exports of steel and aluminum, as a result of government talks failing to achieve a corresponding breakthrough. According to the joint US-EU statement on steel and aluminum trade, “in a demonstration of renewed trust, and reflecting long-standing security and supply chain ties, the US will not apply section 232 duties and will allow duty-free importation steel and aluminum from the EU at a historical-based volume and the EU will suspend related tariffs on US products.”

Exports News

Gareth Stace, Managing Director of UK Steel, has also stated, “UK steel exports to the US have halved since President Trump introduced steel tariffs in 2018.” Stace does not doubt these measures have significantly harmed the UK’s interests in its second-largest steel export market. “While we welcome the US decision to start easing tariffs, without a very early UK deal, our export position will only deteriorate further. It is essential that the government do everything it can to strike a deal and ensure that UK steelmakers are able to sell their steel to the US.”

The relaxation of quotas will result in a large increase in metallurgical product exports to the US, which is a breath of fresh air for EU countries. However, the current raw material shortage in Europe may cause European countries to decrease their exports and favor the supply of local industries until the supply chain situation improves.

Stay Up-To-Date with Exports News

For more information on international trade, make sure to check out the rest of our site and enjoy all the benefits we have to offer today!

No Comments

There aren't any comments yet. Be the first to comment!

logo
Export Portal
The number one import and export source
Export Portal
Feedback
Subcribe modal

Stay up to date

Keep up with the latest Import and Export news from all over the globe.

This website uses cookies. By using this website, you consent to our use of these cookies
confirmed-subscription
Your subscription has been confirmed
Thank you!
logo

Browser not supported

We do not support the Internet Explorer browser. For a better experience, please use a different browser.