UK-US Steel Deal Sparks Hope Among EU Steelmakers Amid Trade Tensions

UK-US Steel
UK-US Steel

UK-US Steel Agreement Offers EU Steelmakers New Trade Optimism

EU steelmakers are watching the UK’s trade breakthrough with the US closely, hoping it signals easing global steel trade tensions.

The United Kingdom became the first country to secure a post-Section 232 deal with the United States. The agreement removes the 25% tariff on UK-origin steel imports and reduces the automotive import tariff to 10% for up to 100,000 vehicles. Beyond this quota, the previous 27.5% duty applies. Although the implementation timeline remains unclear, the agreement marks a major step forward.

EU stakeholders hope this deal paves the way for future EU-US negotiations. The European Commission, however, has not reached a similar agreement. EU steel exports to the US remain at 3.89 million tonnes, far exceeding the UK’s 240,395 tonnes in 2024. The EU currently holds a 2.6 million tonne surplus in steel trade with the US, according to Eurofer data.

EU Eyes Trade Talks, UK Adjusts Quotas to Control Steel Imports

Although hopeful, EU producers fear prolonged delays in securing similar terms with the US and have begun preparing for adverse outcomes.

To defend EU interests, the European Commission launched a public consultation targeting US-origin steel products that could face EU countermeasures. A review of steel scrap exports is also underway, which may result in new restrictions. Simultaneously, EU demand shows weakness, with MEPS International reporting average price declines in most steel products, except drawing quality wire rod.

Meanwhile, the UK’s Trade Remedies Authority (TRA) proposed changes to import safeguard quotas on May 13. These updates aim to reduce the concentration of imports from single countries in three steel categories: Category 4 (metallic coated sheet), Category 7 (non-alloy and alloy quarto plates), and Category 13 (rebar). TRA suggests a 40% cap on each country’s quota share to prevent market distortion. For example, Vietnam supplied 62% of Category 4 imports, while Algeria supplied 86% of Category 13.

TRA also recommended ending the “carry-over” provision that shifts unused quotas to the next quarter. If approved, this rule will take effect on July 1, while country-specific caps will be enforced starting October 1. TRA noted these changes would give importers time to adapt.

Despite these revisions, analysts expect the UK to become a key export target for displaced shipments from the US, particularly if EU and Asian producers remain locked out of the American market.

At SuperMetalPrice, we continue to monitor these developments and their impact on global steel prices and import-export flows.

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