Trade Cases

UK Tariff Rate Quota Officially Begins

Written by Laura Miller

June 1, 2022

US President Joe Biden has officially implemented the tariff-rate quota (TRQ) to ease Section 232 restrictions on steel imports from the United Kingdom.

hand shake

Biden’s presidential proclamation, dated May 31, is clear that only steel melted and poured in the UK – up to 500,000 metric tons per year – is eligible to enter the US free of the 232 tariffs, beginning on June 1. Any shipments more than that volume will still be subject to the 25% tariffs.

That volume “is consistent with the objective of reaching and maintaining a sufficient capacity utilization rate in the domestic steel industry and reflects the continued importance of the special relationship that exists between the US and the UK,” the proclamation says.

In order to be eligible for the TRQ, any UK producer that is owned or controlled by a Chinese company must provide documentation “that there is no evidence of market-distorting practices by that producer in the UK that would materially contribute to non-market excess capacity of steel” via an annual audit conducted by an independent third party.

Biden says he believes the quota measures will help to limit transshipment, discourage excess steel capacity and production, and strengthen the US-UK partnership.

The deal between the US and UK was agreed upon in March with the effective date of June 1.

Similar TRQs have already been implemented on imports from the European Union and Japan. The Commerce Department has signaled that additional 232 negotiations are not happening with South Korea, Brazil, or Argentina.

The White House also officially implemented this week the easing of 232 tariffs on steel imports from Ukraine, but the reprieve is temporary with a one-year expiration date.

The 232 tariffs have been in place since 2018 when they were invoked as matter of national security by the Trump administration.

By Laura Miller, Laura@SteelMarketUpdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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