Thu, 13 Feb 2025

Thu, 13 Feb 2025 UK signals it will seek US steel tariff exemption

Business secretary Jonathan Reynolds says the government has a strong case to avoid tariffs on UK-made steel entering the US.

* The UK government is likely to seek exemptions from US tariffs on British steel, citing a strong case due to small export volumes and special use cases like defense.
* Business Secretary Jonathan Reynolds stated that the UK would not retaliate immediately against new measures announced by the US.
* The UK is not a major supplier of steel to the US, with only 10% of British steel exports going to the country.
* There are concerns within the industry that excess steel could be "dumped" in the UK if other countries stop exporting to the US.
* Reynolds acknowledged global oversupply but argued that the UK was not the problem and would seek exemptions from tariffs.
* The government is reluctant to join potential EU retaliation against further US tariffs, prioritizing free trade over retaliatory measures.
* Tariffs are paid by companies importing goods, potentially leading to higher costs for businesses and consumers.
* The uncertainty around trade tariffs has created challenges for UK businesses already facing tax rises in April.
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