Unfortunately, hopes for a zero-tariff deal on steel are dashed. Specifically, the UK steel industry faces a major setback. Consequently, a proposed agreement is now on hold indefinitely. Currently, UK Steel Tariffs stand at 25% for exports to the US. This news deeply disappoints British steelmakers.
Previously, President Trump hinted at tariff relief. His comments came ahead of his state visit. Therefore, industry leaders felt optimistic. Gareth Stace, director of UK Steel, expressed this frustration. He called the earlier glimpse “tantalising.” However, the US administration ultimately did not act.
Moreover, the UK and US signed a trade deal in June. This agreement reduced tariffs on cars and aerospace. Sadly, it failed to address steel. So, the 25% UK Steel Tariffs persist. Importantly, other countries face even higher 50% tariffs. Consequently, government sources stress the UK’s competitive position.
Nevertheless, the industry expected more. President Trump commented again recently. He said he was “into helping” Britain refine the deal. Accordingly, the new Business Secretary continues negotiations. Senior government sources insist a “path to zero” remains.
However, significant challenges exist. US officials questioned exports from UK giant Tata. The company shut its blast furnaces. Therefore, it no longer makes steel from scratch. This complication likely contributed to the delay.
Meanwhile, one UK producer reported feeling “furious.” The company struggles to compete without a price advantage. The industry overall faces considerable financial distress. Recently, the government took over several Chinese-owned plants. Additionally, Liberty Steel plants collapsed into government control.
Ultimately, the delay brings uncertainty. The government spokesperson promised continued work. They aim to deliver certainty and protect skilled jobs. Conversely, the opposition criticizes the Prime Minister. They note he previously claimed credit for negotiating tariffs to zero.
In conclusion, the dream of tariff-free access fades. The industry must now endure the current UK Steel Tariffs. Hope remains for a better deal eventually. However, immediate relief seems unlikely. The situation highlights the complexities of international trade negotiations.
For more business updates, visit London Pulse News.
