Trade Cases

UK Tariff Rate Quota Officially Begins

Written by Laura Miller

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

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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 Miller

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