UK steel sector urges clarity on timeframe for 0% US tariffs
LONDON, May 9 (Reuters) - Britain's steel sector on Friday urged clarity on when U.S. tariffs will be scrapped under a landmark first deal to remove President Donald Trump's levies on the sector.
Britain on Thursday hailed a deal with the U.S., which it said would reduce steel levies to 0% from 25% so that British producers could keep exporting to the United States.
However, details released late on Thursday showed the two sides must still formalise the security requirements and the quotas that the steel sector must abide by, leaving sector representatives unclear as to when levies will go.
"It's certainly not a formality; I mean there's clearly a lot that hasn't been fully determined and defined in the agreement as of yet," said Chrysa Glystra, Director, Trade and Economic Policy at industry body UK Steel.
Glystra added that firms did not know the supply chain conditions they would have to fulfil to take advantage of the tariffs.
"We don't really have a sense of when this will take effect and what the timescales will be."
Britain's steel sector contributed 1.7 billion to the UK economy in 2024, 0.1% of total output, and the future of the industry has been in some doubt.
The government last month intervened to keep the blast furnaces burning at the UK's last maker of virgin steel, seizing operational control from its Chinese owners.
Details of the U.S. deal released by the British government showed that access to the zero tariff was contingent on a pledge by Britain to "work to promptly meet U.S. requirements on the security of the supply chains of steel and aluminium products intended for export to the United States and on the nature of ownership of relevant production facilities."
"Understanding the United Kingdom will meet these requirements, the United States will promptly construct a quota," the agreement's General Terms said.
The Office of the United States Trade Representative said that the U.S. and UK "will negotiate an alternative arrangement" on the steel tariff.
Britain's trade ministry declined to give a timeframe for when the steel deal would be formalised.
UK Steel's Glystra said there was ongoing engagement with the British government that had been constructive.
"The fact that we now have a foundation of something which is better than what we had before is positive," she said.
"It's obviously not as positive as it would be if we were told that as of today, there were zero tariffs on steel, because that would be preferable."
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