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The Independent
6 days ago
- Business
- The Independent
UK's steel industry spared Trump's new 50 per cent tariffs – but exemption deal still not in place
The UK appears to have been spared from the immediate hit of Donald Trump 's 50 per cent steel and aluminium tariffs – although an exemption deal is still not in place. The US president has decided to 'provide different treatment' to the UK after an agreement was struck between the US president and Sir Keir Starmer last month. Levies will remain at 25 per cent for imports from the UK, according to a version of the order confirming the tariff increase posted by a White House X account on Tuesday – however Britain could still be subject to the higher 50 per cent rate from July. The UK government said it is 'pleased' the UK will not be subject to the additional tariffs as it vowed to secure the removal of the 25 per cent levies too. Sir Keir 's trade deal with the US, struck last month, included an exemption on the steel and aluminium tariffs, but the implementation has not yet been finalised. 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 as soon as possible, and committed to working closely to make it happen. According to the text of the order released on Tuesday, Mr Trump has 'further determined that it is necessary and appropriate to allow for the implementation of the US-UK Economic Prosperity Deal of 8 May, 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'. The order later says that rates will for now stay at 25 per cent and adds: 'On or after 9 July, 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 50 per cent tariff rate more widely is due to come into force from 12.01am Washington DC time on Wednesday, which is shortly after 5am in the UK. A government 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 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.'
Telegraph
06-05-2025
- Business
- Telegraph
The India deal may prove a hard sell for Sir Keir
After three years of negotiations, Britain and India have at last agreed a trade deal. The UK will slash tariffs on imports from India and India will do the same for British exports, including whisky, cars, medical devices and much else. The deal is good news for British consumers and exporters, a boost for free trade in an increasingly protectionist world, and a triumph for the Brexit vision of reorienting trade away from the stagnating European continent. The Remainer claim that we would be stuck behind Brussels in the queue for future deals has been discredited. The problem for Sir Keir Starmer is that his woeful record on tax and migration will make it difficult for him to sell this deal to the public. One of the sticking points in negotiations had been the taxation of Indian workers temporarily posted to Britain by their employers. Yesterday's deal granted these workers an exemption from paying National Insurance contributions in the UK so long as they pay the equivalent tax in India. Such an arrangement could have been sold as a sensible move to avoid workers being taxed twice and, indeed, Business Secretary Jonathan Reynolds attempted to portray it as such, noting that we already have 17 similar deals, including with the EU, US and South Korea. On the heels of last Autumn's National Insurance raid, however, and concern over the volumes of both legal and illegal immigration, it is potentially politically toxic. Indeed, Conservative leader Kemi Badenoch has wasted no time in accusing Sir Keir of introducing a system of 'two-tier taxes', with his deal being portrayed by Reform and the Tories as granting tax cuts for some migrants, even as British workers face tax hikes. Concerns are also being raised over the potential impact on migration. The Indian government's own statement announcing the deal claimed that it 'eases mobility' for Indian workers, and secures 'immense opportunities' for Indian youth in the UK. Mr Reynolds, however, asserted it would have 'no impact' on Britain's immigration system, besides a small number of workers accessing a visa capped at 1,800 per year. Given the Government's record, many will wish for more solid assurances that this deal does not amount to liberalisation of visa policy by the backdoor. The economic benefits of this deal should have seen it welcomed by all quarters. It is a deep shame that Labour's dysfunction has overshadowed what may prove to be a great Brexit victory.
