UK hopes for 0% tariff on steel exports to US dashed

"A government spokesperson said: "We are still the only country to benefit from a 25% tariff on steel exports to the US, reinforcing our position as a trusted source of high-quality steel." Other countries face tariffs of 50% and so senior government sources insist that the UK is in a competitive position relative to others, and added they believed there, although senior government sources insist there "remains a path to zero"."

"At the time the 25% tariff was first imposed, steel executives described the move as "devastating". However, industry sources told the BBC today that while the news was disappointing, the UK still enjoyed a comparative advantage over other producers who face 50%. One added that it at least gave the industry some certainty in a world where a surplus of cheap steel was causing many countries to erect trade barriers to protect their domestic industry. Gareth Stace from UK Steel said the UK should do the same. "It is even more imperative now that the UK government beefs up its own trade defences to ensure UK steelmakers have a sustainable share of their own market. In these market conditions, the last country to protect their industry will be the first to lose it," he said."

"A government spokesperson said: "We are continuing to work closely with the US to deliver certainty for UK industry, protect skilled jobs and support economic growth as part of our Plan for Change." Hopes of a hasty deal to remove tariffs completely hit snags as US officials raised questions"

A proposed deal to eliminate US tariffs on UK steel exports has been put on hold indefinitely, leaving a 25% tariff in place. UK steel exports to the US account for 6% by volume and 9% by value. The government says the 25% tariff reinforces the UK's reputation as a trusted source of high-quality steel and notes other countries face 50% tariffs, giving the UK a comparative advantage. Industry reactions range from disappointment to cautious relief, with calls for stronger domestic trade defences to protect UK steelmakers. Negotiations with US officials have encountered questions and delays.

Read at www.bbc.com