The UK steel industry has been issued a much-welcomed exemption from Donald Trump’s hiked tariffs, amid warnings the relief could be a temporary measure.
The US president decided to keep tariffs at 25 per cent on British steel and aluminium for now, but the industry has warned that “uncertainty remains” over the final tax rate.
Gareth Stace, the director general of UK Steel, said: “Continued 25 per cent tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike.
“However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders.”
The US president has decided to “provide different treatment” to the UK after a deal that was struck between Washington and London last month, as he doubled tariffs on imports from elsewhere to 50 per cent.
However Britain could still be subject to the higher rate from July, or the quotas in the agreement could come into force, effectively eradicating the tax.
Sir Keir Starmer will face questions on the deal’s future during PMQs later today.
Government urged to ‘apply rocket boosters’ to US negotiations
Gareth Stace, director general of UK Steel, urged the Government to “apply rocket boosters” to negotiations to get US tariffs removed from steel imports as soon as possible.
Mr Stace told the BBC’s Radio 4 Today programme: “We need the UK Government to apply rocket boosters to those negotiations with the US administration to get that deal over the line and remove tariffs altogether on our imports and exports to the US market, which is our second biggest export market.”
He said the last months and weeks had been a “rollercoaster ride of uncertainty”, adding: “We woke up on Saturday morning to the president saying he’s going to increase tariffs to 50%.
“All of the UK steel exporters were in touch with their customers, almost all of them were cancelling those orders or pausing indefinitely.
“Now they will have to get back in touch with those customers and say: ‘Are those deals back on or not?’”
Athena Stavrou4 June 2025 08:01
Britain given 5 weeks to finalise exemption
Britain escaped a hike to steel tariffs – but , has been given just five weeks to finalise a full exemption.
Sir Keir Starmer’s much-hyped UK-US trade deal unveiled last month should have exempted Britain from steel tariffs completely, but is still yet to be implemented. And Mr Trump has now set a deadline of next month for the deal to be finalised.
Levies will remain at 25 per cent for imports from the UK, according to a version of the US executive order that confirmed the worldwide tariff increase on Tuesday, which also added that Britain could still be subject to the higher 50 per cent rate from 9 July.
Athena Stavrou4 June 2025 08:01
Trump temporarily spares UK from new 50% tariffs in last-minute exemption
Donald Trump will spare Britain’s steel and aluminium industry from his 50 per cent tariffs on Wednesday.
The US president has given Britain a reprieve as he doubles the levies on imports to he US as he vows to “further secure” American industry.
It means levies will remain at 25 per cent for imports from the UK, according to a version of the US executive order that confirmed the worldwide tariff increase on Tuesday, which also added that Britain could still be subject to the higher 50 per cent rate from 9 July.
Athena Stavrou4 June 2025 07:54
