UK Steel has welcomed the US decision to maintain a 25% tariff on UK-origin steel imports instead of raising it to 50%, but stresses the urgent need to implement the US-UK Economic Prosperity Deal signed on 8 May. The industry body warns that lingering uncertainty could disrupt trade and deter US customers from placing new orders.
US President Donald Trump recently doubled tariffs on steel and aluminum imports to 50%, effective 4 June. However, UK steel remains exempt from this increase, allowing time for both governments to finalize the trade agreement aimed at removing tariffs entirely. While the exemption provides short-term relief for shipments already en route to the US, UK Steel cautions that the lack of clarity surrounding final tariff rates could hinder future exports.
The association’s director general, Gareth Stace, urges swift implementation of the deal, emphasizing that global oversupply and weak demand are already placing immense pressure on the UK steel sector. On or after 9 July, the US is expected to finalize the agreement, potentially replacing tariffs with quota-based exemptions or increasing tariffs to 50% for UK steel imports. Meanwhile, the UK must strengthen trade protections as market dynamics shift in response to EU safeguards.
