The TRA assessment, launched in September 2023 and announced on February 21, indicated that imports are likely to increase, and if the safeguard measures are not extended, they will expire later this year and the country's trade could suffer.
Steel safeguards, a system that is the result of trade distortions and diversion of international trade, were introduced by former US President Donald Trump and have been in operation since 2018, providing a tariff-free trade agreement to certain countries and regions, although 25% tariffs on exports have been imposed from time to time.
It was revealed that the United Kingdom had transitioned to steel safeguards in 2021, encompassing 19 product categories, but has retained 15 of them to date. In its February 21 review, UK Steel, the UK steelmakers' association, emphasized the need for continued steel safeguards as global steelmaking overcapacity increased by 23% and weak steel demand and capacity growth continued.
UK Steel, in its statement on developments and capacity issues, pointed out that global steelmaking capacity is 630 million tons, almost 60 times the size of the UK market. It also highlighted that diverting some of this capacity to UK Steel could destabilize the market balance.
While the TRA emphasizes the importance of extending the steel safeguard measures until 2026, it remains to be discussed whether UK Trade Minister Kemi Badenoch will decide on which products and categories to extend the safeguard measures.
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