Charles Esther
The UK steel industry is breathing a sigh of relief today after being spared from the latest escalation in the US trade war.
US President Donald Trump has doubled tariffs on steel and aluminium imports from many countries to 50 per cent.
However, the levies on UK steel and aluminium remain at 25 per cent.
This different treatment is linked to a pending Transatlantic trade agreement, which Labour leader Keir Starmer highlighted last month.
The agreement is expected to introduce quotas that will exempt most UK exports from higher tariffs once finalised.
Despite this reprieve, the White House has warned that the tariffs could still increase to 50 per cent if it believes the UK Prime Minister has not complied with the broad terms of the agreement.
Trade Secretary Jonathan Reynolds met with US officials in Paris last night amid a scramble to determine whether the UK would be included in the new tariff hikes.
The UK Government expressed its pleasure that the steel industry “will not be subject to these additional tariffs.”
Gareth Stace, director general of UK Steel, described President Trump’s decision as a “welcome pause.”
He explained that the initial 25 per cent tariff earlier this year was a significant shock to the industry.
Then, the news over the weekend that tariffs could rise to 50 per cent was “really quite devastating” for the sector’s ability to plan its future.
Stace told MPs on the Business and Trade Committee: “We have longstanding arrangements with our customers in the US.
There are not customers we just obtain on a spot basis – they rely on us for their business.”
When asked if the deal agreed by Sir Keir Starmer with President Trump offered any protection, Stace responded: “Not at this moment, no.”
The situation remains uncertain as UK officials work to clarify the terms of the trade agreement and ensure protections for the steel industry.
For now, the 25 per cent tariff remains in place, providing some stability amid ongoing trade tensions.
