UK delegation arrives in Washington after Trump delays removing steel tariffs

Yesterday, the Government confirmed that tariff cuts for the car and aerospace sectors have come into force.

Car manufacturers exporting to the US will face a 10 per cent tariff quota, down from 27.5 per cent, while the aerospace sector will see a 10 per cent levy removed entirely.

The Prime Minister and US President finalised the deal for those industries at the G7 summit, but levies on steel have been left standing at 25 per cent rather than falling to zero as originally agreed.

The Government has dispatched a trade delegation of UK officials to the US to progress talks and try and finalise the removal of the steel tariffs.

The executive order signed by Mr Trump suggests the US wants assurances on the supply chains for UK steel intended for export, as well as on the “nature of ownership” of production facilities.

It is understood that this mainly pertains to Tata Steel, in Port Talbot, as opposed to the virgin steel made at British Steel’s Scunthorpe plant.

Last week, Business Secretary Jonathan Reynolds said the UK would need to get exemptions for steel produced in Port Talbot to meet the US “rules of origin”.

“The issue with the implementation of the steel agreement is the melt and pour rules, which is the US interpretation of rules of origin around steel,” he said.

That applies to Port Talbot, where semi-finished products come into the UK and then go to the mills to keep the business going, Mr Reynolds explained.

While on British Steel, “we have to resolve issues of ownership separate to issues around US trade,” he said.

Earlier in the year, the Government took control of the Scunthorpe steelworks from Chinese owner Jingye to ensure there were enough raw materials to keep the blast furnaces lit.

This was not full nationalisation, although the Business Secretary acknowledged the move did take it closer to that possibility.

Mr Reynolds said this “comes up in the context of the US being very supportive of what we did” in the trade talks, however he added the ownership was something that needed to be resolved “regardless of the US talks.

A Downing Street spokesperson told The Yorkshire Post: “We continue to work with the US to ensure the agreement to remove the 25 per cent tariffs on steel and aluminium as soon as possible and in the best interests of the UK industry.

“Thanks to this deal, the UK was the only country to be made exempt of the 50 per cent tariffs on steel and aluminium now face.”

Today, the Government is bringing in the Support Steel Charter, which will protect the domestic industry from surges in foreign imports.

Mr Trump has frequently talked about his anger at cheap Chinese steel undercutting material produced in the US.

Now, Mr Reynolds has confirmed that the levels of some steel imports to the UK will be capped, while certain country-specific limits will be put in place.

The Government said this will ensure “UK steel producers won’t be undercut while still making sure the UK has a steady and reliable supply”.

Mr Reynolds added: “This Government is unapologetic in our support for the UK steel sector-it underpins Britain’s industrial strength, our national security, and our status as a global power.

“These measures back our producers and the thousands of families and communities who rely on steel production in the UK.

“We've taken decisive action to protect the UK market and level the playing field, and we’ll go further with our new Steel Strategy to build a stronger, more competitive future for British steel making it central to our plan for change.”