Tata Steel, the UK’s largest steelmaker, faces potential exclusion from Prime Minister Keir Starmer’s new tariff-free trade agreement with the United States, prompting urgent talks between ministers and US counterparts.
The company, which operates the vast Port Talbot site in south Wales, fears it may fall foul of stringent US origin rules that threaten its $100 million annual export business to America.
Speaking on Wednesday, Starmer confirmed that the agreement – brokered with US President Donald Trump last month to lift tariffs on UK steel and aluminium – could be enacted “in just a couple of weeks”. The deal pauses the imposition of new 50% tariffs on British metals and keeps the current rate at 25% until at least 9 July. However, key implementation details, including quota sizes and qualifying conditions, have yet to be finalised.
At the heart of the issue is the “melted and poured” rule that governs US steel imports, which mandates that steel must be manufactured entirely in the country of origin to qualify for tariff exemptions. Tata Steel, in the midst of transitioning to greener production using electric arc furnaces, has been importing steel from its sister companies in India and Europe to fulfil orders – a practice that could breach the US requirements.
The Times has reported that UK negotiators are pressing for a carve-out that would allow Tata’s steel to qualify under the new trade terms. A senior government source told the paper they were “confident” that a solution could be found, but acknowledged that “the negotiations are complex.”
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