UK Hopes for 0% Tariff on Steel Exports to US Dashed
Speaking to reporters as he boarded Air Force One, Trump said he is 'into helping' Britain on fine-tuning the UK-US trade deal.
SEATTLE (Scrap Monster): A proposed deal to eliminate tariffs on UK steel exports to the US has been put on hold indefinitely, the BBC understands.
Tariffs of 25% are currently applied to steel exports to the US, which make up 6% of all UK steel exports by volume and 9% by value.
Other countries face tariffs of 50% and so senior government sources insist that the UK is in a competitive position relative to others.
But hopes remain for a better deal, after President Donald Trump hinted at tariff relief for British steel ahead of his second state visit to the UK.
Gareth Stace, the director of UK Steel, said on Wednesday that the industry was 'disappointed'.
'On 8 May, we were given this tantalising glimpse that we might get a tariff-free quota,' he told the BBC's Today programme.
The UK and US signed a trade deal in June that reduced tariffs on car and aerospace imports to the US, but failed to agree on terms for British steel, leaving tariffs on it at 25%.
Mr Stace said despite the efforts of the UK government, 'it's not within their gift, it's within the gift of the US administration'.
Mr Stace said there were hopes that Trump's visit could lead to a better deal, and added: '25% on unlimited exports might be better than a very restrictive tariff-free quota but paying 50% for everything else'.
Speaking to reporters as he boarded Air Force One, Trump said he is 'into helping' Britain on fine-tuning the UK-US trade deal.
'They want to see if they can refine the trade deal a little bit,' he said
'We've made a deal, and it's a great deal, and I'm into helping them.
'They'd like to see if they could get a little bit better deal. So, we'll talk to them.'
His comments will be welcomed by Peter Kyle, the new business secretary, who said that tariff relief for British steel is being negotiated.
Senior government sources insist there 'remains a path to zero'.
Courtesy: www.bbc.com