NEWS STORY : UK Steel Industry in Limbo as Trump Doubles Tariffs But Temporarily Spares Britain
STORY:
The UK has been granted a temporary reprieve from a sweeping new US tariff hike that sees import duties on steel and aluminium doubled from 25% to 50%, under a fresh executive order signed by US President Donald Trump.
The move, which takes effect immediately for most countries, leaves the existing 25% tariff in place for British exports, at least for now. The exemption is tied to a yet-to-be-enacted US-UK tariff agreement signed in May, aimed at scrapping levies on steel and aluminium altogether. Until that pact is fully implemented, UK exporters remain subject to the current tariffs and could still be hit with the 50% rate if negotiations stall.
In a statement, the UK government reaffirmed its commitment to protecting “British business and jobs” vowing to work with Washington to bring the May agreement into force. Legislation to enable the deal is expected to be introduced in Parliament “in due course”.
President Trump justified the UK’s temporary carve-out on the basis of the UK-US Economic Prosperity Deal signed on 8 May. However, he warned that the exemption could be revoked “on or after July 9” if the UK is found to be falling short of its commitments under the deal.
The latest twist in transatlantic trade relations follows months of rising tariff pressure. After initially slapping 25% duties on all steel and aluminium imports in February, Trump followed up with a 10% baseline tariff on most other goods from 2 April. The May agreement offered a potential breakthrough, but its delay has left UK industry exposed and uncertain.
Business Secretary Jonathan Reynolds met with US Trade Representative Jamieson Greer in Paris this week to press Britain’s case. But industry voices remain cautious.
Gareth Stace, director general of UK Steel, welcomed the UK’s temporary exemption as “a welcome pause” but warned that “uncertainty remains over timings and final tariff rates,” adding that US buyers may now be hesitant to place UK orders.
Shadow business secretary Andrew Griffith blamed the situation on Labour’s handling of negotiations, claiming their “botched” approach had left businesses “in limbo”.
