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Tariffs

UK Steel Tariff Relief Negotiations Underway as Business Secretary Promises Update

Strategic Insights

— 1 min read

The UK is pushing to secure relief from US tariffs on steel imports, with Business Secretary Peter Kyle assuring that negotiations are underway to provide much-needed support to the industry. The UK and US signed a trade deal in June that reduced tariffs on car and aerospace imports, but the terms for British steel remain unresolved, leaving tariffs at 25%. Kyle emphasized that the UK's steel industry is "better protected than any other around the world" and that efforts are being made to ensure the benefits are sustainable and long-term.

Key Takeaways:

  • The UK is negotiating tariff relief for its steel industry with the US, with Business Secretary Peter Kyle assuring an announcement will be made as soon as possible.
  • The tariffs on British steel imports remain at 25% despite the UK-US trade deal in June, which reduced tariffs on car and aerospace imports.
  • Kyle stated that the UK's steel industry is "better protected than any other around the world" and that efforts are being made to ensure the benefits are sustainable and long-term.
  • Kyle visited Washington last weekend, where he met with US officials to discuss the tariff relief for British steel.
  • MPs have called for the UK Government to maximize pressure on the US to secure relief from tariffs ahead of Donald Trump's state visit.
  • The UK Government's failure to agree on terms for British steel in the June trade deal has left the industry facing significant financial burdens.
  • Kyle's assurance of a deal "very soon" suggests that negotiations are progressing, but the timing and terms of the agreement remain uncertain.

Statistics:

  • 25%: The current tariff rate on British steel imports to the US.
  • June: The month in which the UK and US signed a trade deal that reduced tariffs on car and aerospace imports but failed to agree on terms for British steel.
  • 0: The number of days labour leader Jeremy Corbyn has described as a "red-line" in trade agreements, citing the need for relief from US tariffs on British steel.

Sources:

  • [BBC Sunday Morning With Laura Kuenssberg, 2023]

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