The UK’s exemption from a doubling of duties on most US steel and aluminium imports is dependent on the ratification of May’s trade pact between the two countries, the White House has warned.
Tariffs of 50% were imposed on all shipments from early on Wednesday morning, except those arriving from UK shores which will still be subject to a 25% rate.
Donald Trump decided to “provide different treatment” to the UK as he doubled down on the rates that had been in place since March as part of his early trade war salvoes which are designed to encourage more domestic production.
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White House economic adviser Kevin Hassett said of the move: “We started at 25 and then after studying the data more, realised that it was a big help, but more help is needed and so that is why the 50 is starting.”
The decision to spare UK products from the hike currently amounts to a reprieve of just over a month, however, as the clock ticks down to a US deadline of 9 July.
That is when wider “Liberation Day” tariff pauses for US trading partners could be applied.
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President Trump’s executive order said of the UK’s situation: “On or after July 9, 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 [economic prosperity deal], 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”.
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Even if the trade pact agreed with the UK was to be fully enacted by that time, quotas within that agreement could still technically mean that a higher rate will apply in future.
The government of Sir Keir Starmer has said it is continuing to work with US officials to agree the terms.
A 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 UK steel industry was cautious in its own response, while welcoming the reprieve.
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Gareth Stace, the director general of UK Steel, said: “Continued 25% tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike.
“However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders.
“The US and UK must urgently turn the May deal into reality to remove the tariffs completely.”
