The UK steel industry has narrowly escaped a sharp tariff increase imposed by US President Donald Trump. While the US raised steel and aluminum import taxes to 50% this week, British exports will temporarily remain at 25%. However, this relief may not last long if the UK steel producers fail to finalize their recent trade agreement with the US.
President Trump’s executive order, effective wednesday, doubles tariffs on foreign steel and aluminum. Yet, the UK steel industry secured an exemption due to last month’s US-UK economic prosperity deal (EPD). The agreement, signed on May 8, aims to eliminate these tariffs entirely.
Despite this temporary reprieve, Trump warned that tariffs could still rise after July 9 if the UK does not meet the deal’s terms. Business Secretary Jonathan Reynolds recently met US Trade Representative Jamieson Greer in Paris to discuss the agreement concerning the UK steel sector. The UK government insists it will implement the deal swiftly to protect jobs and businesses.
The UK steel industry exports over £400 million worth of steel to the US annually. America is the world’s second-largest steel importer, making these tariffs critical for British manufacturers. Gareth Stace, head of UK Steel, called the situation a “rollercoaster of uncertainty” but welcomed the temporary pause on higher tariffs.
Rowan Crozier, CEO of Birmingham-based Brandauer, said the exemption helps UK firms stay competitive, especially in the steel industry. Still, he criticized the ongoing confusion caused by shifting trade policies. His company, which supplies precision metal parts, faces challenges as US customers hesitate to place long-term orders.
Shadow business secretary Andrew Griffith accused Labour of leaving businesses “in limbo” with delayed negotiations. Meanwhile, economists warn that Trump’s tariffs could backfire. Alan Auerbach, a tax policy expert, noted that higher costs may hurt US buyers before domestic production can ramp up, affecting the steel industry fiercely.
For now, the UK steel industry remains in a precarious position. If the US-UK deal moves forward, tariffs could disappear entirely, promising a bright future for UK steel sector. If not, British exporters may soon face the same 50% rates as their global rivals.
For more political updates, visit London Pulse News.
