Posted on 05 Jun 2025
The United Kingdom is pushing the United States to remove tariffs on British steel exports in line with a deal struck last month, ahead of a planned blanket doubling of levies.
Business Secretary Jonathan Reynolds met US Trade Representative Jamieson Greer on Tuesday in Paris amid efforts to rescue the deal to remove metals tariffs on US imports from Britain that was struck last month, but now is in danger of failing to be implemented ahead of a doubling of levies to 50%.
Reynolds and Greer discussed “implementing agreements on sectoral tariffs as soon as possible” and “agreed that businesses and consumers on both sides of the Atlantic must start to feel the benefits of the deal soon,” according to a statement from the UK’s Department for Business and Trade on Tuesday evening.
The statement didn’t make explicit reference to the steel situation.
If the United Kingdom and the United States are unable to reach a resolution, it would risk the so-called economic prosperity agreement announced last month between two nations not delivering on one of its key components.
The agreement was sold by US President Donald Trump and Prime Minister Keir Starmer as a trade deal to reduce tariffs, but so far it hasn’t taken effect.
“When it comes to implementation of the agreement, that work is ongoing,” Starmer’s spokesman, Dave Pares, told reporters on Tuesday, signalling the UK does not know whether its steel industry will face 50% US tariffs.
“It’s up to the United States to make their own policy announcements,” he said ahead of the meeting between Reynolds and Greer.
The UK steel industry has warned repeatedly that tariffs on US imports could further imperil the viability of mills already battling against global overcapacity, depressed steel prices and weak demand in many key industrial sectors.
Trade group UK Steel said last week that it understands the new 50% tariff will apply to all US-bound exports, and as such British steel mills are likely to be shut out of their second-most important overseas market until an exemption can be secured.
The planned doubling “is yet another body blow for all UK steelmakers in this torrid time,” UK Steel director general Gareth Stace said in a statement.
“Exporters are fearful that orders will now be cancelled, some of which are likely being shipped across the Atlantic as we speak.”
Under the agreement announced last month, the British government said duties on metals exported to the United States would be slashed to zero, and auto tariffs would be reduced to 10%.
In return, the United Kingdom agreed to fast-track US items through their customs process and reduce barriers on “billions of dollars” of agricultural, chemical, energy and industrial exports, including beef and ethanol.
“That agreement is committed to removing tariffs on steel and aluminium to save jobs and help the industry in the United Kingdom,” Pares said.
“That would mean that once that deal has been implemented, the steel industry will not pay tariffs for the majority of steel products that they’re exporting to the United States.”
Source:The Star
