Door opens wider for UK steel, aluminum

Negotiators from the United States and the United Kingdom have forged what U.S. trade representatives call a “novel agreement” with the U.K. that allows for “historically-based sustainable volumes of U.K. steel and aluminum products to enter the U.S. market without the application of Section 232 tariffs.” 

The agreement places U.S. import volume quotas on metals produced in the U.K., including steel rebar and several types of semi-finished steel, stainless steel and aluminum, such as billets and slabs. Scrap is not listed as being subject to any quotas.

The U.S. Department of Commerce says in a news release, “In addition to novel smelt and cast requirements on aluminum, this deal also requires that any U.K. steel company owned by a Chinese entity must undertake an audit of their financial records to assess influence from the People’s Republic of China government. The results of these audits must also be shared with the United States.”

The department also refers to China in describing the agreement as one that will “counter unfair trade practices by China that harm our industries and workers.” It is likely the Commerce Department has in mind Scunthorpe, U.K.-based British Steel Ltd., which is part of China’s Jingye Group.

The Commerce Department states, “This critical deal will not only help to ensure the long-term viability of our steel and aluminum industries and protect American jobs, but once implemented, it will also lift retaliatory tariffs on over $500 million worth of U.S. exports to the U.K., including distilled spirits, various agriculture products and consumer goods. This deal serves as another example of President Biden’s commitment to rebuilding and strengthening relationships with our vital allies and partners while working together to address unfair practices by countries like China.”

Commerce Secretary Gina M. Raimondo comments, “By allowing for a flow of duty-free steel and aluminum from the U.K., we further ease the gap between supply and demand for these products in the United States. And by removing the U.K.’s retaliatory tariffs, we reopen the British market to beloved American products. I want to thank my counterpart, U.K. Secretary of State for International Trade Anne-Marie Trevelyan, for her part in this effort, which brings our countries closer together and represents a win-win for both businesses and consumers in the U.S. and the U.K.”

United States Trade Representative (USTR) Katherine C. Tai remarks, “In addition to the U.K. eliminating the retaliatory tariffs against the United States, we have also agreed to continue engaging on the threat posed by carbon-intensive nonmarket excess capacity in the steel and aluminum industries.”

The full 84-page announcement, which includes an 80-page list of covered products, can be found on this web page.