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.
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
Read more from Laura MillerLatest in Trade Cases
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Commerce increases import duties on Korean galv, plate
The Commerce Department is raising the import duties on imports of corrosion-resistant sheet and cut-to-length plate from Korea.
Leibowitz on trade: Why is protectionism so popular?
The world has had a few shocks recently. The CEO of a major health insurance company was gunned down in Manhattan. The 50-year Assad dynasty in Syria was pushed out less than two weeks after rebels started an offensive. And President-elect Trump is promising tariffs on everything a month before he takes office. But one shock has been taking place for a lot longer than the last few weeks. The 70-year consensus on trade hasn’t just been challenged. It’s been repudiated.
Ternium chief say Mexico tariffs ‘irrational’
Vedoya said the proposed tariffs are "an irrational measure that would harm both their own industry and ours."
Price on Trade: Trump tariffs are no negotiating tool – and could come at lightning speed
We focused on trade actions the second Trump administration might take in a prior column. Since then, we have learned more about the individuals who will be leading these efforts. Recent nominations reinforce the president-elect’s statements that tariffs will feature prominently in the second administration and that trade actions will be unveiled at lightning speed.