Major boost for British steel with EU deal but still no confirmation over US tariffs
The government confirmed that key steel products such as support beams could now be exported to Europe from 1 August without additional costs, a significant aid to an industry which has been hampered by rising energy bills and global trade uncertainty.
Business secretary Jonathan Reynolds, said the date marked a 'positive step forward' for the UK steel industry and would allow firms to 'compete, grow, and maintain vital export relationships.'
He added: 'This builds on the significant support that this pro-steel Government has already delivered — from our £500m investment in Tata's green steel transition, to action to safeguard jobs at British Steel in Scunthorpe, and our deal with the US to reduce tariffs on UK steel.'
However, there is presently no agreement in place for that reduction on exports to the US, with Britain presently subject to 25 per cent tariffs on products within that industry, despite a 10 per cent base tariff arrangement elsewhere.
Donald Trump said this week the steel exemption deal would be finalised 'pretty soon', with Politico noting Keir Starmer's agreement, saying the UK and US were 'doing the implementation of that.'
Effective immediate, however, the UK can export 27,000 tonnes of 'category 17' steel – including angles and sections of steel – to the EU each quarter without paying any tariffs.
Around 75 per cent of total British steel exports go to the EU, worth nearly £3bn annually.
UK Steel director general Gareth Stace said Friday's change was 'excellent news' for the sector that had been 'plagued by problems' in exporting steel to the EU.
British Steel's interim chief commercial officer Lisa Coulson added: 'The removal of EU tariffs on British-made steel is a significant boost to our business. The EU is an important market to us, particularly for the products our highly skilled colleagues manufacture.
'We are delighted we will be able to provide the high-quality products our loyal and supportive EU customers require tariff-free and thank the UK Government for delivering this agreement. We now look to the future with even greater optimism as we focus on building stronger futures for our customers.'
British Steel opted not to comment when asked about the importance or status of ongoing discussions around a deal with the US.
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