UK steelmakers have narrowly avoided being hit with a damaging 50% import tariff by the United States – for now – after President Trump signed an Executive Order confirming that the UK will remain under the existing 25% tariff while a new bilateral steel agreement is finalised.
The temporary reprieve comes despite earlier warnings that British steel exports would face the sharp hike from Tuesday, following the White House’s move to double tariffs on imports from countries not covered by trade exemptions. The UK, which currently falls under the original 25% tariff imposed in March, has been granted a stay of execution – but only until 9 July, by which time the Economic Prosperity Deal (EPD) between the UK and US must be concluded.
In a statement, UK Steel said the decision provides a “time-bound vote of confidence” in British steelmakers – but warned the lack of clarity surrounding final tariff rates and deal timing risks destabilising transatlantic trade, with nervous US buyers potentially looking elsewhere for supply.
Gareth Stace, Director-General of UK Steel, welcomed the breathing room: “The President’s decision not to impose a 50% tariff on UK steelmakers, but to keep the rate at 25% while the UK-US deal is completed, is a welcome pause. The Business Secretary, Jonathan Reynolds, recognises that steel trade stability and security between our two nations is of utmost importance and has acted swiftly.”
He added that the maintained 25% rate would spare British producers from immediate disruption on shipments already in transit, but stressed that hesitation from US customers now looms large. “Uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders.”
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