British steel and aluminium producers have been given an unexpected break from a tough new trade rule introduced by the United States. Earlier this week, US President Donald Trump announced that tariffs on steel and aluminium imports would double, aiming to protect American industries. These tariffs are extra costs placed on goods coming from other countries, making them more expensive to buy in the US.
However, in a surprising move, the UK was exempted from these doubled tariffs. Instead of facing a 50% tax like many other countries, British steel and aluminium exporters will only face a 25% tariff for now. This reduction is meant to allow time for the full implementation of the US-UK Economic Prosperity Deal, a trade agreement signed by President Trump and UK Labour leader Sir Keir Starmer earlier this year.
Industry Pressure for Quick Action
While the exemption provides relief, many in British industry want the government to speed up negotiations to make the trade deal fully effective. UK Business Secretary Jonathan Reynolds held talks with his US counterpart Jamieson Greer in Paris to try to push the agreement forward.
Duncan Edwards, chief executive of BritishAmerican Business, described the delay as “very frustrating.” He said it creates a “credibility issue” when the deal is announced but not yet fully operational.
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Russell Codling, director of markets business development at Tata Steel, highlighted the problem from the steel industry’s point of view. He said the 25% tariffs are already having a “big impact,” causing “huge levels of uncertainty” for steel producers. Tata Steel operates major steelworks in Port Talbot, south Wales, and the US is the UK’s second largest export market for steel, worth around £400 million annually.
UK carmakers are also waiting for clarity. The trade pact promises to reduce US tariffs on up to 100,000 British cars from 25% to 10%, but companies don’t yet know how they will qualify for the quota or how it will be shared. Murray Paul, public affairs director at Jaguar Land Rover, said the delay is causing serious harm, with “a complete cessation of activity with US customers and orders.” He urged for the deal to be implemented “really, really quickly.”
Deal Details and Conditions
The trade deal includes important conditions. British steel will only be eligible for zero tariffs if the UK meets US security requirements, particularly ensuring China is excluded from supply chains.
President Trump’s executive order also warns that the UK’s tariff exemption could be revoked if Britain does not comply with the agreement. This puts pressure on the UK to finalize the deal quickly.
As part of the deal, the UK agreed to let more American products into its market without tariffs, including 13,000 tonnes of beef and 1.4 billion litres of bioethanol, which helps make UK petrol less carbon intensive.
Despite the hurdles, Jonathan Reynolds expressed hope after his meeting with Jamieson Greer, saying both sides are working to implement the agreement “as soon as possible,” though no exact timeline was given.
