British steel and aluminum exporters begin duty-free exports to the US

Exporters of steel and aluminum in the UK no longer need to pay duties on exporting materials to the US, with some volumes allowed to export duty-free from 1 June.

In March, the US announced that it would replace Section 232 steel and aluminum tariffs on UK supplies with a quota system.

Up to 500,000 tons per year of steel, 900 tons per year of raw aluminium, 11,400 tons per year of semi-finished aluminum and 9,300 tons per year of aluminum foil will now be allowed to enter the US duty-free.

Imports of steel products from the UK into the US must be smelted and cast in the UK to be eligible for quota protection, under an agreement that also includes new aluminum smelting and casting requirements.

In addition, any metal produced in the UK by a company linked to China will be reviewed and required to be "attested".

The UK government said in a June 1 statement that for the first time since 2018, UK steel and aluminum exporters can export duty-free to the US.

“The removal of tariffs was seen as a huge win by UK steelmakers and will open up new business opportunities for companies across the supply chain,” the statement said.

It is a significant day for UK steel companies and their US customers, UK Steel CEO Gareth Stace said, adding that the deal was a "significant improvement in the trading environment for the UK sector".

“From today, UK steelmakers will once again be able to sell steel to US consumers duty-free, giving them an important competitive advantage over global competitors and allowing them to regain market share lost in the years since the tariffs were introduced,” Stace said.

According to S&P Global Commodity Insights, Platts estimated UK weekly hot-rolled coal prices at £950/t DDP West Midlands on 27 May, up 14.5% from early 2022.

“From today, our UK steel and aluminum exporters can also return to cross-Atlantic exports to our biggest trading partner,” said UK Secretary of State for International Trade Anne-Marie Trevelyan.

In response, the UK ended its "rebalancing measures" on a wide range of US-sourced goods, including whiskey, making US goods cheaper to import and reducing costs for British consumers and businesses.

The US imported a total of 281,606 tons of steel from the UK in 2018 and 231,104 tons in 2019, including carbon, alloy and stainless steel products, according to the Commerce Department. Imports from the UK fell to 190,240 tons in 2020 but rose to 272,079 tons in 2021.

In 2021, the US imported from the UK 127.5 million tons of raw aluminium, 4862 million tons of flat semi-finished aluminum and 9314 million tons of aluminum foil.