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US extends by another year temporary suspension of tariffs on Ukrainian steel

Published 05/31/2023, 06:44 PM
Updated 05/31/2023, 08:06 PM
© Reuters. The Department of Commerce building is seen before an expected report of new home sales numbers in Washington, U.S., January 26, 2022.      REUTERS/Joshua Roberts

By Kanishka Singh

WASHINGTON (Reuters) - The United States will extend by another year the temporary suspension of tariffs on Ukrainian steel, the Commerce Department said on Wednesday, citing the Russian invasion of Ukraine.

The United States initially suspended tariffs on Ukrainian steel for one year in May last year, months after the Russian invasion began.

Then-President Donald Trump in 2018 imposed a tariff of 25% on steel imports from countries including Ukraine. U.S. lawmakers urged President Joe Biden to remove the tariffs after Russia invaded Ukraine in February 2022.

Ukraine was the 13th largest steel producer and typically exported about 80% of its production before the invasion from Russia.

Prior to Russia's invasion, nearly half of U.S. imports from Ukraine were metals such as iron, pig iron and steel, but they represented a tiny fraction of total U.S. imports of metals.

The U.S. Chamber of Commerce noted Ukraine exported a total of $1.9 billion in goods to the United States in 2021 - less than 0.1% of all U.S. imports but about 2.8% of Ukraine's total exports.

© Reuters. FILE PHOTO: An employee carries out operations during the production of iron at Yenakiyeve Iron and Steel Works in the course of Russia-Ukraine conflict in Yenakiyeve in the Donetsk region, Russian-controlled Ukraine, May 26, 2023. REUTERS/Alexander Ermochenko/File Photo

Last week, the European Union agreed to suspend restrictions on imports from Ukraine for a further year.

Earlier on Wednesday, the White House announced the latest in a series of aid packages for Ukraine that includes up to $300 million worth of air defense systems, ammunition and other defense equipment.

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