Trade Cases

CRU: UK plans to increase HR steel quota
Written by CRU
August 15, 2024
The Trade Remedies Authority (TRA) in the UK has proposed raising the tariff rate quota (TRQ) for imports of hot rolled sheet steel because of blast furnace closures at the Port Talbot works in south Wales.
Tata Steel shut down one BF in July with the second to follow in September ahead of a switch to the greener electric arc furnace (EAF) steel making process at Port Talbot from 2027.
“These changes have resulted in higher imports and parts of the current quota being exhausted, creating uncertainty and driving up costs for steel users,” said the TRA’s chief executive Oliver Griffiths.
The authority suggests creating two sub-groups from its Category 1 for steel: Category 1A with an unchanged quota accessible to those importing for commercial applications, and Category 1B for downstream processing only and set 89% higher than that of 1A.
The TRA also proposes Category 1B’s quota is allocated globally to allow companies to establish reliable supply chains, but with a cap between 37% and 42% to ensure no country’s exports dominate the new quota.
The import allowance under Category 1A is just over 1 million tons per year of hot rolled sheet and for Category 1B around 1.9 million tons per year. If the limits are breached, imports will attract a 25% tariff.
Interested parties have until Aug. 19 to comment on the proposals, which follow a review by the TRA requested by Tata Steel and Kromat Trading in February.
This article was first published by CRU. To learn more about CRU’s services, visit www.crugroup.com.
Latest in Trade Cases
Price on Trade: The foolishness of free trade with controlled economies
It was only a matter of time before a shutdown happened. And, no, we aren’t talking about the federal government’s lapse in appropriations. On Oct. 9, Beijing announced a series of restrictions that will effectively shut down exports of rare earth elements, magnets, and certain downstream products vital to advanced manufacturing.
Trump pulls plug on trade talks with Canada after anti-tariff Reagan ad
US President Donald Trump took to social media late Thursday night to announce he was canceling trade talks with Canada.
Leibowitz: Renewed trade war with China over rare earths
On Oct.10, President Trump announced major increases in tariffs on Chinese goods. The trigger was a new regime of export controls on rare earth metals and products using those elements, including magnets, capital equipment, and catalysts for catalytic converters in cars and trucks.
Industry piles on new Section 232 steel derivative inclusion requests
The Department of Commerce received 97 submissions from producers, manufacturers, and groups seeking Section 232 tariff coverage for steel and aluminum derivative products.
Price on Trade: New EU steel tariffs don’t mean the US should weaken its stance
Any steel imports into the EU that exceed the new, lower quota level would be subject to a 50% tariff, which represents a major increase from the EU’s current 25% out-of-quota tariff. This move would largely align the EU’s steel tariff rate with Canada and the United States.
