The UK is likely to be the only country that will secure a 25pc straight duty for steel sales to the US, sources close to the ongoing negotiations between the countries told Argus on Thursday.
Other countries may get a quota, but the US is pushing for small volumes with a 50pc out of quota duty. The UK government pushed for zero tariff quotas and was offered them, but the volume was too small and the tariff preventative, so the government opted for the straight 25pc tariff, which is unlikely to be replicated for other countries. This also applied to the tariff on 407 derivative products, which would not have received a quota and would have seen the steel component tariff rise to 50pc.
The EU is in talks with the US and hoping to align with the UK rate, but is unlikely to achieve it, sources said.
Tata Steel UK will be able to sell to the US at this 25pc rate, because US concerns over it not melting its own steel have diminished. The mill, which closed its last blast furnace in September 2024, has been importing semi-finished steel for further processing, but primarily sources from its parent company in India — US concerns over its imports of slab and coil related primarily to Chinese feedstock, which the firm does not purchase.
"It is disappointing we do not have the tariff-free quota level, but if the US was never offering that deal, then the final decision on 25pc offers a degree of certainty and potentially a competitive advantage", industry association UK Steel director-general Gareth Stace told Argus.
The deal is also likely to be welcomed by other UK-based exporters to the US, as it provides certainty and a workable tariff. Given the lack of clarity, US buyers had stepped back from purchasing UK origin material.
The government had previously announced in May that it would secure zero tariff access to the US, but this was contingent upon it matching some US import policies, which is currently not possible in light of Tata's transition to being the UK's largest steel importer.
