UK-US Trade Deal: Steel Tariffs Remain Amid Uncertainty

Strategic Insights -

The UK and US have finalized a deal to cut trade barriers on goods from both countries, but US steel tariffs on British imports remain unchanged at 25% despite promises from Sir Keir Starmer to have them removed. A US executive order signed by Donald Trump has raised concerns that the tariffs may increase to 50% if the UK does not meet certain requirements, including working to meet American security requirements on the supply chains of steel and aluminium products. The deal, signed during the G7 meeting on Monday, aims to reduce tariffs to 0% but the timeline for implementation is unclear.

Key Takeaways:

  • US tariffs on British steel imports remain at 25% despite promises to have them removed.
  • The US president has set July 9 as the date to decide whether to proceed with the agreement to reduce tariffs to 0% or to increase them to 50%.
  • The UK government has assured that the deal with the US had already spared the UK from being hit with the global 50% tariff on steel and aluminium from June 4.
  • The executive order signed by Mr Trump suggests the US wants further assurances about the UK steel industry, including working to meet American requirements on the security of steel and aluminium supply chains.
  • The UK government has stated that it is working to implement the agreement as soon as possible and in the best interests of UK industry.
  • The ownership structure of British Steel does not need to change to complete the deal with the US, according to Sir Keir Starmer.
  • Transport Secretary Heidi Alexander has said that there is still "more work to do" to get steel tariffs eliminated, including on "technical detail".

Statistics:

  • 25%: Current US tariffs on British steel imports.
  • 50%: Global tariff rate on steel and aluminium imposed by the US.
  • 50%: Proposed increase in steeltariffs if the UK does not meet the US requirements.
  • June 4: Date from which the global 50% tariff on steel and aluminium was due to take effect.
  • July 9: Date set by Mr Trump to decide whether to proceed with the agreement to reduce tariffs to 0% or increase them to 50%.

Sources:

  • Department for Business and Trade
  • Statement by Sir Keir Starmer
  • Executive Order signed by Donald Trump
  • Statement by Transport Secretary Heidi Alexander