Government ‘confident' it can implement US deal in time to protect steel sector
US president Donald Trump exempted the UK from the 50% tariffs on steel and aluminium that came into effect on Wednesday morning, saying he would 'provide different treatment' after the deal struck between London and Washington last month.
The decision means that British steel exports will continue to face a 25% levy from America, rather than the higher rate, while negotiations continue on bringing the agreement into effect.
Prime Minister Sir Keir Starmer said: 'As a result of our landmark deal with the US, UK steel won't be subject to additional tariffs.
'My Government will always protect British businesses and British jobs.'
But the situation could still change again in July, when the US is set to either increase the tariffs to 50% or introduce the quotas in the US-UK agreement, effectively eradicating the tax, depending on whether the deal is implemented.
Transport Secretary Heidi Alexander told the BBC's Today programme on Wednesday she was 'really confident' that her Cabinet colleagues had the 'ability' and 'determination' to 'ensure that we are protecting British businesses and that we can get on and implement the trade deals we have agreed'.
Ms Alexander said the Government would be introducing legislation 'to ensure that that happens', although this could take the form of regulations rather than a full Bill.
Meanwhile, the head of industry body UK Steel, Gareth Stace, urged the Government to 'apply rocket boosters' to negotiations with the US on implementing the deal.
Mr Stace said Mr Trump's decision to keep tariffs on British steel at 25% was a 'welcome pause' but warned that continuing uncertainty was making US customers 'dubious over whether they should even risk making UK orders'.
The Government has pledged to keep working with the US to get the agreement up and running and the 25% tariff rate 'removed'.
Those negotiations saw a meeting between Business Secretary Jonathan Reynolds and US trade representative Jamieson Greer in Paris on Tuesday at which the two men committed to working closely to implement the deal.
President Trump just signed a proclamation raising tariffs on steel and aluminum imports by 50% to protect U.S. steel and national security.🇺🇸
THE GOLDEN AGE IS HERE! pic.twitter.com/TP32u0M4dR
— The White House (@WhiteHouse) June 3, 2025
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.'
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