UK steelmakers are expecting to encounter a new 50% import tax after President Trump hiked his tax on all steel and aluminium entering the US. 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’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 understands the new 50% charge will therefore likely affect all UK steelmakers’ US imports from Wednesday. The US is the UK’s second most important export market, worth around £400m and totalling nine per cent by value of exports, therefore it is critical that this new steel tariff does not apply to UK steel imports to the US.
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.
“UK Steel is now pressing our 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.”