Huw Thomas
Commercial correspondent, BBC Wales
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American prices on imported steel and aluminum have “frightened” British Steel customers, according to Tata Steel Uk.
The chief executive officer Rajesh Nair told deputies that some American customers were looking for other suppliers to avoid the “tariff war”.
Tata Steel operates the UK’s largest steel in Port Talbot and exports around $ 100 million (77 million pounds Sterling) per year in the United States.
The company has declared to the Affairs and Commerce Committee that there was also a “significant impact” of cheaper steel from around the world being diverted to the United Kingdom due to American prices.
On March 12, the United States imposed prices of 25%, or import taxes, on steel and aluminum products arriving in the United States.
According to Mr. Nair, Tata Steel exports from the United Kingdom to America are steels and tubular products for the oil and gas industries.
“Customers are frightened, customers want to go see other suppliers to make sure they are not caught in the pricing war,” he said.
Nair testified to the investigation of the British government’s next industrial strategy.
He said that existing customers had contacted the company to cancel orders and, in other cases, asked for the “compensation” from Tata Steel to the cost of prices, which was to be paid by the importer in the United States.
Tata Steel UK
Tata Steel UK’s Managing Director Rajesh Nair said that American customers are looking for alternative suppliers to avoid “pricing war”
In response to American prices, the European Union imposed a series of reprisals on American goods exported to the EU.
But the United Kingdom has resisted the restoration directly, the Westminster government continuing to put pressure for a large trade agreement with the Trump administration.
When asked if the United Kingdom was to retaliate with its own prices, Rajesh Nair rather called for greater protection for British steelworks against foreign imports.
“We must act in a way and in a way in which we protect and protect the industry in a way in which outgoing players can continue to do business, and the customer gets a good deal at the end of all this.
“It must be short-term measures to protect what we have in the country, rather than reprisal measures,” he said.
Reuters
Steel products made in Port Talbot face prices in the United States and increased competition in the United Kingdom from imports that are diverted from the American market
The Steelmakers’ union community, which also appeared on Tuesday on the committee, said that it was concerned about the impact of tariffs and diverted steel on British labor.
“We are worried about what it means for jobs and for the sustainability of the industry,” said Alasdair McDiarmid, deputy secretary of the community.
He said the prices were “a terrible idea, it is a terrible idea for the United States as much as for us”.
When asked if the workers were angry with the change in commercial policy, Mr. McDiarmid said: “Yes, they are angry, of course, they are angry.
“They are concerned about their livelihoods, the future of their plant and their communities. It is not a situation in which they would choose to be.”
He said that “the greatest concern” for the union was the diversion of American market steel in the United Kingdom, and said that Great Britain was to move “extremely and decisively” to strengthen trade defenses.
The Secretary of British Government Affairs and Trade, Jonthan Reynolds, previously declared that he wanted to continue “a pragmatic and positive commitment” with the administration of President Trump “to agree with a broader economic agreement in our two interests”.
