In a recent development, the United States has granted an exemption to Ukrainian steel from the 25% tariff for an additional year. The proclamation was issued by US President Joseph Biden following a request from US Commerce Secretary Gina Raimondo. The Ministry of Economy of Ukraine has confirmed this decision.
Furthermore, President Biden has also supported Secretary Raimondo’s proposal to exempt a statue made from Ukrainian raw materials, which originates from the European Union, from duties.
Yuliya Svyridenko, First Deputy Prime Minister of Ukraine and Minister of Economy, commented on the significance of this decision, stating, “Throughout this year, we have emphasized to our partners that integrating Ukrainian metallurgy into production chains in the EU and the USA is the primary means of revitalizing the Ukrainian steel industry. The proclamation by the US President is one of the most practical steps towards strengthening this integration.”
Ukraine is actively working with the European Union to integrate its steel markets as well. The EU’s autonomous trade measures, extended until May 25, 2023, include exemptions for Ukrainian capital from anti-dumping and protective duties.
Additionally, a separate dialogue on steel has been initiated within the framework of the Ukraine-EU industrial dialogue, which involves steel producers. This dialogue aims to address the challenges faced by the Ukrainian steel industry and explore opportunities for collaboration and market integration.
President Biden’s proclamation, titled “Proclamation on Regulation of Steel Imports to the United States,” recognizes the significant impact of the production disruptions on Ukrainian steel and acknowledges the importance of this industry to Ukraine. The United States and Ukraine share a mutual interest in preserving the steel sector as an economic lifeline during the country’s rebuilding process.
Due to the challenges faced by the industry, steel production in Ukraine during the first quarter of 2023 has decreased by 66.22% compared to the same period in 2022, with a total volume of 1.23 million tons in 2023 versus 3.6 million tons in 2022.
In May 2022, the United States initially implemented a one-year duty-free regime for Ukrainian steel, underscoring the American government’s commitment to supporting Ukraine’s economic stability by incorporating Ukrainian metallurgical products into its own production processes.
This exemption not only provides a boost to the Ukrainian steel industry but also reinforces the cooperation between the United States and Ukraine in the economic sphere. It serves as a testament to the willingness of both countries to support each other and foster a stronger partnership.
