Donald Trump to keep tariffs at 25% on British steel and aluminium for now
President Donald Trump has decided to keep tariffs at 25% on British steel and aluminium for now, as he doubles tariffs on imports from elsewhere to 50%.
The decision to 'provide different treatment' to the UK comes after a deal that was struck between Washington and London last month.
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 came into force at 12.01am Washington DC time on Wednesday, shortly after 5am in the UK. Donald Trump unveiled sweeping tariffs on April 2, as part of his so-called 'Liberation Day'. / Credit: AP
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.'
How did we get here? 10 February: Trump announces 25% tariff on all US steel and aluminium imports
Trump announces 25% tariff on all US steel and aluminium imports 2 April: Trump unveils 'Liberation Day' tariffs including 10% on British goods
Trump unveils 'Liberation Day' tariffs including 10% on British goods 8 May: UK-US trade deal to remove tariffs on UK steel and aluminium
UK-US trade deal to remove tariffs on UK steel and aluminium 4 June: Trump doubles tariffs on imports to 50% (25% for the UK)
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.
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.'
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.
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