The UK’s exemption from increased duties on most US steel and aluminium imports hinges on the ratification of the trade agreement made in May, according to the White House.
Tariffs of 50% have been enforced on all shipments starting early Wednesday morning, apart from those arriving from the UK, which will maintain the previous 25% rate.
Donald Trump opted to “provide different treatment” to the UK as he confirmed the elevated rates that had been implemented since March, part of his initial trade war strategies aimed at boosting domestic production.
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White House economic advisor Kevin Hassett commented on the decision: “We began at 25%, and after analyzing the data, realized that while it was beneficial, additional support was necessary, which is why we are implementing the 50% rate.”
The decision to exempt UK goods from the increase currently offers a temporary relief of just over a month, with a US deadline approaching on 9 July.
This date marks the potential implementation of broader “Liberation Day” tariff pauses for US trading partners.
Mr. Trump’s executive order noted about the UK’s situation: “On or after 9 July, the secretary may modify the applicable duty rates and establish import quotas for steel and aluminium consistent with the EPD [economic prosperity deal], or he may raise the duty rates to 50% if he finds that the United Kingdom has not adhered to relevant aspects of the EPD.”
Even if the trade agreement reached with the UK is fully enacted by then, quotas within that agreement could still mean that higher rates may apply in the future.
The government led by Sir Keir Starmer has stated it is actively collaborating with US officials to establish the terms.
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A spokesperson commented: “The UK was the first country to secure a trade agreement with the US earlier this month, and we are dedicated to safeguarding British businesses and jobs in crucial sectors, including steel, as part of our Plan for Change.”
“We are pleased that our agreement with the US ensures UK steel will not incur these additional tariffs. We will keep working with the US to implement our agreement, which will ultimately remove the 25% US tariffs on steel.”
While welcoming the reprieve, the UK steel industry expressed cautious optimism.
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Gareth Stace, General Director of UK Steel, stated: “The continuation of 25% tariffs will assist shipments already en route that we feared might be subject to the increased tax.”
“However, uncertainty persists regarding timelines and final tariff rates, and US customers may hesitate to place orders with UK suppliers.”
“The US and UK must promptly transform the May deal into reality to eliminate tariffs entirely.”