Tata Steel UK and British Steel have stated that their customers have panicked and have started cancelling orders following the imposition of 25 percent tariffs on steel imports from all countries without exceptions by the US administration, according to media reports.
Rajesh Nair, CEO of Tata Steel UK, said the company’s sales and profit could incur significant damage since its customers want to switch to other suppliers in order not to get caught up in the tariff warfare. At the same time, in some cases, customers are asking for compensation from Tata Steel for the tariff costs, which should be paid by the importers in the US, according to Mr. Nair.
In the meantime, Allan Bell, COO of British Steel, pointed out that the company is supplying about 50,000 mt of steel to the US per year. According to him, the customers are concerned about the impact of the tariffs and they are considering the option to cancel their orders. Mr. Bell also added that, in cases where British Steel is the sole supplier for certain steel products, its customers are considering procuring that steel elsewhere.