(qlmbusinessnews.com . Fri 5th June, 2025) London, UK —
UK Temporarily Exempt from Trump's Doubling of Steel Tariffs – But Uncertainty Lingers
The United Kingdom has narrowly avoided being hit by a sharp increase in US tariffs on steel and aluminium – for now.
US President Donald Trump has signed an executive order raising import duties on steel and aluminium to 50% from 25% for most countries. However, the UK has been granted a temporary reprieve, with tariffs on its exports remaining at the original 25% rate – pending further developments.
This exemption hinges on the implementation of a recent trade agreement between the two nations. The Economic Prosperity Deal (EPD), signed on 8 May 2025, would see tariffs on British steel and aluminium scrapped altogether. However, the agreement has yet to come into force, leaving UK manufacturers in limbo.
While the government insists it is working to implement the deal “as soon as possible”, critics warn that the delay is causing damaging uncertainty. Shadow Business Secretary Andrew Griffith accused Labour of “botched negotiations”, claiming that businesses are being left “in limbo”.
President Trump’s order does include a caveat: should the UK fail to comply with aspects of the EPD, the US reserves the right to impose the 50% tariff on or after 9 July.
Trade tensions have escalated steadily in recent months. Since February, the Trump administration has introduced a series of sweeping tariff changes affecting global trade with the US. The latest hike, imposed on 4 June, affects nearly all foreign steel and aluminium – with the UK’s carve-out negotiated only days earlier during a meeting between Business Secretary Jonathan Reynolds and US Trade Representative Jamieson Greer in Paris.
Under the UK-US deal struck last month, both countries agreed to remove certain tariffs: UK steel and aluminium would face zero duties, while US beef and ethanol products would be granted lower tariffs entering the UK. However, concerns remain over potential impacts on domestic sectors, such as British wheat farmers reliant on the ethanol market.
Steel remains a vital export industry for Britain, with the US accounting for around 7% of UK steel exports, valued at over £400 million annually. Many British firms produce high-grade specialist steel primarily for US customers.
Gareth Stace, Director of UK Steel, said the industry had faced “a rollercoaster of uncertainty”, but welcomed the temporary reprieve. “Ultimately, we want to see these tariffs scrapped altogether,” he said. “This deal could give us a competitive edge – but only if it’s enacted swiftly.”
Meanwhile, business leaders such as Rowan Crozier of Brandauer in Birmingham warn that prolonged confusion is harming confidence and long-term planning. “We’re facing damaging uncertainty, not just tariffs,” he told reporters.
President Trump’s tariff strategy, part of his broader ‘America First’ agenda, aims to boost domestic manufacturing and job creation. Yet economists argue the policy risks driving up prices for US consumers, and stifling the very investment needed to expand domestic steel production.
While UK firms have sidestepped the worst – for now – the next few weeks could be decisive in determining whether the reprieve becomes a lasting resolution or just a temporary pause in a looming trade clash.
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