US president Donald Trump has announced that the UK will no longer be subject to 50% steel and aluminium tariffs
The president has stated that they will “provide different treatment” to the UK regarding US steel tariffs.
A deal has been agreed between the nations, but has not yet been signed.
General tariffs remain for the UK
The deal targets steel and aluminium specifically, meaning the blanket 25% levy on British exports will still be in effect.
The deal is also a delicate one, with it being made clear that the 50% US steel tariff could still be put in place if the White House “determines that the United Kingdom has not complied with relevant aspects”.
The deal was agreed upon by business secretary Jonathan Reynolds and US trade representative Jamieson Greer.
Gareth Stace, director general of UK Steel, said: “Continued 25% tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike.
“We need the UK government to apply rocket boosters to those negotiations with the US administration to get that deal over the line and remove tariffs altogether on our imports and exports to the US market, which is our second biggest export market.”
British steel industry already in a delicate state
In April, a bill was passed in record time to save the British Steel industry. The Steel Industry (Special Measures) Act passed control of British Steel to the government.
The former owner of the company, Jingye, were losing money on British Steel at a rate of up to £700,000 per day after acquiring it in 2020.
Jonathan Reynolds now controls the company’s board and staff.
At the time, John Foster, chief policy and campaigns officer at CBI, said: “The government’s decision to take control of British Steel is a necessary outcome of last resort needed to preserve the UK’s primary steel production capability.
“With the government’s Growth Mission focused on delivering big infrastructure projects to drive economic growth, it is vital the UK doesn’t lose vital steelmaking capabilities. Looking beyond today, securing a sustainable future of steelmaking must also ensure that it is supported in the transition towards electric.
“In a period of global instability, it is increasingly important for our resilience that we have the capability within the UK to provide the steel that we need and that isn’t subject to the volatile backdrop provided by tariffs.”
The current avoidance of US steel tariff could potentially allay these fears
Of the acquisition, British prime minister Keir Starmer, said: “Today, my government has stepped in to save British Steel. We are acting to protect the jobs of thousands of workers, and all options are on the table to secure the future of the industry. Delivering security and renewal for working people is at the heart of my Plan for Change.
“This government is turning the page on a decade of decline, where our manufacturing heartlands were hollowed out by the previous government.
“In recent weeks alone, we have announced the expansion of Heathrow airport and the building of the biggest theme park in Europe in Bedford. We are reforming our planning rules to build 1.5m homes, and the infrastructure the nation desperately needs. New roads, railways, schools, hospitals, grids and reservoirs. British steel will be the backbone as we get Britain building once more.
“This is a government of industry. That’s why we’ve secured a better deal for the workers of Port Talbot. It’s why we fought to secure the future of Harland & Wolff. It’s why we’ve pledged £200m to Grangemouth. Our industry is the pride of our history – and I want it to be our future too.
“A secure future. A Britain rebuilt with British steel, in the national interest.”
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