EU Tariffs Lifted on UK Steel: A Reset in Trade Relations

The European Union is set to remove tariffs on significant British steel products starting Friday, a development hailed as part of Britain's strategy to recalibrate relations with the bloc. This decision follows a groundbreaking agreement in May which marked the most notable update in the defense and trade ties between Britain and the EU since Brexit, safeguarding UK steel exports under specific EU regulations.

Initially, Britain announced plans to return the European Commission's country-specific steel quota to pre-2022 levels but had not provided a specific timeline. Trade Minister Jonathan Reynolds celebrated the tariff removal as a 'positive step forward for the UK steel sector,' pointing out previous government efforts that saved jobs at British Steel and avoided steep U.S. tariffs.

The quota adjustment allows the UK to export up to 27,000 tonnes of steel to the EU quarterly without facing additional charges. Gareth Stace, director general of UK Steel, praised this quota restoration as 'excellent news,' vital for companies troubled by prior shipping issues. Meanwhile, UK's export tariffs to the U.S., currently at 25%, remain a key challenge with further negotiations required.

(With inputs from agencies.)