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Tariffs

Uncertainty Looms Over US-UK Trade Deal and Steel Industry

Strategic Insights

— 1 min read

The UK steel industry is facing uncertainty after the US-UK trade deal was finalised this month, leaving tariffs on steel at 25 per cent instead of falling to zero as originally agreed. Tata Steel, owner of the Port Talbot plant, has warned that its exclusion from tariff-free access under the US deal puts over £150m of annual exports at risk. The UK Government is trying to negotiate an agreement with the US to secure the outstanding tariff agreements.

Key Takeaways:

  • The Tata Steel plant in Port Talbot does not meet the "melt and pour" rules needed to receive exemptions from US President Donald Trump's steel tariffs, according to Trade Secretary Jonathan Reynolds.
  • The US-UK trade deal leaves tariffs on steel at 25 per cent, rather than falling to zero as originally agreed.
  • Tata Steel has warned that its exclusion from tariff-free access under the US deal puts over £150m of annual exports at risk.
  • The UK Government plans to class Britain's steel and energy sectors as "nationally important" to UK security under new procurement rules.
  • The move includes government departments being instructed to prioritise UK-produced steel products for infrastructure projects.
  • The British Steel plant ownership issue will be resolved separately from the US trade talks, according to Trade Secretary Jonathan Reynolds.
  • Prime Minister Sir Keir Starmer has insisted the ownership structure of the British Steel plant in Scunthorpe does not need to change to complete the deal with the US.

Statistics:

  • £150m: The amount of annual exports from Tata Steel that are at risk due to the exclusion from tariff-free access under the US deal.
  • 25 per cent: The tariff rate on steel that remains in place after the US-UK trade deal.
  • PS: The currency used by Tata Steel to express the value of the exports at risk.

Sources:

  • Trade Secretary Jonathan Reynolds, Jonathan Reynolds said that the Tata Steel plant in Port Talbot does not meet "melt and pour" rules needed to receive exemptions from US President Donald Trump's steel tariffs.
  • US-UK Trade Deal finalised this month.
  • Tata Steel, owner of Port Talbot, has warned that its exclusion from tariff-free access under the US deal puts over PS150m of annual exports at risk.
  • Executive Order signed by Trump.

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