The steel tariff deadline is fast approaching, leaving Prime Minister Keir Starmer in a frantic race to protect British steel from massive US import taxes. With less than 48 hours until the July 9 cutoff, the UK risks facing a steep 50% tariff hike if no agreement is reached.
Despite securing exemptions for car and aerospace exports, British steel remains under a 25% levy. Now, the steel tariff deadline threatens even higher costs for the industry. Downing Street has refused to confirm whether a last-minute deal will prevent the increase.
President Donald Trump is aggressively pushing trade negotiations with multiple nations. Last month, he exempted the UK from his sweeping 50% steel tariffs. However, the reprieve hinges on Britain complying with the US-UK Economic Prosperity Deal.
A No. 10 spokesperson stated that discussions with Washington are ongoing. They emphasized the US commitment to removing tariffs but avoided guaranteeing success before the steel tariff deadline.
Meanwhile, US Trade Secretary Howard Lutnick hinted that affected countries will receive formal notices on July 9. The actual tariff hikes, however, may not take effect until August 9. This discrepancy adds uncertainty to the UK’s efforts.
At the recent G7 summit, Starmer finalized key parts of the UK-US trade deal. Automotive tariffs dropped from 27.5% to 10%, while aerospace levies were eliminated entirely. Yet steel remains a sticking point.
British steel producers fear disastrous consequences if the 50% tariffs take effect. Higher costs could cripple exports and damage an already struggling sector. The government insists it is working closely with US officials, but time is running out.
Starmer previously hailed the US-UK agreement as historic. Now, his team must deliver before the steel tariff deadline passes. Failure could leave British steel at a severe global disadvantage.
As negotiations continue, businesses and lawmakers anxiously await clarity. Will the UK secure a last-minute reprieve, or will steel exporters face punishing new costs? The answer may come down to the wire.
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