Steel industry welcomes 25% tariffs but warns ‘uncertainty remains'

Yahoo

3 days ago

Industry has welcomed Donald Trump's decision to keep tariffs at 25% on British steel and aluminium for now, but warned that 'uncertainty remains' over the final tax rate.
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%.
Levies will remain at 25% for imports of steel from the UK into America, however Britain could still be subject to the higher 50% rate from July, or the quotas in the agreement could come into force, effectively eradicating the tax.
The 50% tariff rate for imports of steel and aluminium from other nations is due to come into force from 12.01am Washington DC time on Wednesday, which is shortly after 5am in the UK.
The Government said on Tuesday night they were 'pleased' that the industry 'will not be subject to these additional tariffs'.
Gareth Stace, the director general of UK Steel, said that Mr Trump's decision is a 'welcome pause'.
He added: 'Continued 25% 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 and UK must urgently turn the May deal into reality to remove the tariffs completely.'
Prime Minister Sir Keir Starmer's trade deal with the US, struck last month, included relief on the steel and aluminium tariffs, but it has not yet come into force.
Officials have been working to try and finalise the details of the agreement.
According to the text of the order, published by a White House X account on Tuesday, Mr Trump has 'further determined that it is necessary and appropriate to allow for the implementation of the U.S.-UK Economic Prosperity Deal of May 8, 2025 (EPD), and to accordingly provide different treatment, as described below, for imports of steel and aluminium articles, and their derivatives, from the United Kingdom'.
🚨 @POTUS just signed the order raising tariffs on steel and aluminum imports to 50%.
Here is the text of the order:
1. On January 11, 2018, the Secretary of Commerce (Secretary) transmitted to me a report on the Secretary's investigation into the effect of imports of steel… https://t.co/4uwBVmd4Zj
— Rapid Response 47 (@RapidResponse47) June 3, 2025
The order later says that rates will for now stay at 25% and adds: 'On or after July 9, 2025, the Secretary may adjust the applicable rates of duty and construct import quotas for steel and aluminium consistent with the terms of the EPD, or he may increase the applicable rates of duty to 50 percent if he determines that the United Kingdom has not complied with relevant aspects of the EPD'.
The Government has pledged to keep working with the US to get the agreement up and running, and the 25% tariff rate 'removed'.
A spokesperson said: 'The UK was the first country to secure a trade deal with the US earlier this month and we remain committed to protecting British business and jobs across key sectors, including steel as part of our Plan for Change.
'We're pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs. We will continue to work with the US to implement our agreement, which will see the 25% US tariffs on steel removed.'
The Conservatives have said that Labour's 'botched negotiations have left businesses in limbo'.
Shadow business and trade secretary Andrew Griffith said: 'Keir Starmer stood in front of the nation and insisted to the British public that his Labour government had achieved a trade deal with the US – and now one month later our industries face a fresh tariffs blow.
'So once again it seems that Keir Starmer's promise was just like the rest: hollow and broken. Labour's botched negotiations have left businesses in limbo and this country simply cannot afford their continuing failure.'
Business Secretary Jonathan Reynolds met White House trade representative Jamieson Greer in Paris on Tuesday.
According to the Department for Business and Trade, Mr Reynolds and Mr Greer discussed a desire to implement the deal struck between London and Washington as soon as possible, and committed to working closely to make it happen.
The general terms for the agreement between the UK and US were published in May when the deal was announced, and outline the intended plans.
White House press secretary Karoline Leavitt was asked if there was a text of the full deal ready to be released, and told reporters on Tuesday: 'There 's most definitely text with this deal, there is language that this side has seen.
'You'll have to ask the UK Parliament why they haven't seen it from their own Government, I obviously can't answer that question.'