Sir Keir Starmer is in a race against time to put the UK-US deal on tariffs on steel into practice, as Britain could be slapped with 50 per cent tariffs in less than 48 hours.
The UK has already managed to negotiate a deal with the US that eliminates the threat of tariffs to British car and aeroplane manufacturers, but levies on steel have been left standing at 25 per cent rather than falling to zero as originally agreed.
The failure to secure a reprieve for the industry leaves open the threat that the current 25 per cent tariff rate could rise to 50 per cent after the July 9 deadline.
Britain was exempt from a presidential decree last month, which raised tariffs on steel imports from most countries to 50 per cent. But from July 9, the decree says the US commerce secretary “may increase the applicable rates of duty to 50 per cent if he determines that the United Kingdom has not complied with the [Economic Prosperity Deal]”.
On Monday, Downing Street refused to say whether the government was confident that a deal to eliminate American tariffs on UK steel would be struck ahead of Wednesday’s deadline.
Asked if the government was confident a deal would be reached on UK steel, a No 10 spokesman said: “Our work with the US continues to get this deal implemented as soon as possible.
“That will remove the 25 per cent tariff on UK steel and aluminium, making us the only country in the world to have tariffs removed on these products.
“The US agreed to remove tariffs on these products as part of our agreement on May 8. It reiterated that again at the G7 last month. The discussions continue, and will continue to do so.”
Pressed again whether ministers were sure British producers would not be hit by the 50 per cent tariff, the Downing Street spokesman said that “discussions continue”.
“We have very close engagement with the US, and the US has been clear that it wants to keep talking to us to get the best deal for businesses and consumers on both sides.”
Mr Trump is reportedly stepping up pressure on countries that could soon be subject to the tariffs, urging them to negotiate trade deals with the US.
But amid signs of confusion within the US administration, trade secretary Howard Lutnick has suggested America’s trade partners will see the levies begin on August 9, after receiving a letter outlining them on July 9.
Tariff cuts for the automotive and aerospace sectors came into force last month after Sir Keir finalised parts of the UK’s deal with the US at the G7 summit.
Car manufacturers exporting to the US will face a 10 per cent tariff quota, down from 27.5 per cent, while the aerospace sector will see a 10 per cent levy removed entirely.
The prime minister hailed the “historic trade deal” with the US, clinched after Donald Trump imposed the import taxes as part of his “liberation day” tariffs on countries across the world.
