Several media organisations report that Commerce Secretary Wilbur Ross said that there will be a 25% tariff on steel and a 10% tariff on aluminium.
Responding to the news, UK Steel director Gareth Stace said that today “is a bad day for the steel sector, for international relations and for free trade”.
“Since President Trump stated his plans to impose blanket tariffs on steel imports almost three months ago, the UK steel sector had hoped for the best, but still feared the worst. With the expiration of the EU exemption now confirmed to take effect tomorrow [Friday, 1 June], unfortunately our pessimism was justified and we will now see damage not only to the UK steel sector, but also the US economy,” he said.
“Throughout, we have urged the UK and EU authorities to do all they practically can to steer us away from this outcome, showing President Trump that we are not the problem here. But it is evident that even with the extra time provided by the temporary exemptions, common ground has not yet been found and plain common sense has not prevailed. Any US calls for the EU to voluntarily place hard limits on its exports of steel were completely unjustified, against WTO rules and run counter to central tenets of free-trade. It is only right that have been rebuffed by European Commissioner, Cecilia Malmström.
“It is difficult to see what good can come of these tariffs, US steel consumers are already reporting price increases and supply chain disruption and with some half billion dollars of steel exported from the UK to US last year, UK steel producers are going to be hit hard.”
Ben Digby, CBI International director, said that the measures are “deeply concerning for firms in the UK, for close trading partners and across supply chains”.
He added: “Now is not the time for any disproportionate escalation, and we urge the EU to consider this when initiating its response. The UK is the largest foreign investor in America, and British companies support over 1 million jobs in the States, stretching from Alaska to New York. We must work with the USA to find a way out of this current scenario that preserves our economic links, and we will continue working urgently with the U.S. Administration to protect British trade, jobs and growth.
“We hope that the USA will swiftly reconsider its decision, and we will be pressing home the importance of our transatlantic relationship with our counterparts and government figures in Washington, London and Brussels in order to protect the free and fair trade that is the key to our economic future.”
The Department for International Trade said in a statement that it was "deeply disappointed".
Please read DIT response to the US decision to apply tariffs to steel and aluminium imports from the EU. pic.twitter.com/zVPW7Y5TrS
— Department for International Trade (@tradegovuk) 31 May 2018
Image Credit: Google Maps/Screenshot
