Donald Trump decides to ‘provide different treatment’ after trade deal but UK could still face 50% rate if pact falters
The White House has announced that the United Kingdom will be exempt from the 50% steel and aluminium tariffs that came into effect on Wednesday. This decision follows a deal struck between Washington and London last month, which has led to the US providing “different treatment” to the UK, as stated by US President Donald Trump.
In a statement released by the White House, President Trump confirmed that while the executive order signed on Tuesday evening will raise import taxes for US firms buying from other countries, the UK will not face the higher 50% tariffs. Instead, the current 25% tariffs on imports from Britain will remain in place. However, the statement also warned that the higher 50% rate could be imposed from July if the US administration determines that the UK has not complied with relevant aspects of the deal.
The UK government has welcomed the decision, emphasizing its commitment to protecting British businesses and jobs across key sectors, including steel. A spokesperson for the UK government 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.”
UK Steel, an industry body representing the steel sector in the UK, also welcomed the decision to keep tariffs at 25%. However, its director general, Gareth Stace, highlighted that “uncertainty remains” over the final tariff rates. Stace 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.”
Last month, the UK and the US agreed on a trade deal that was described as a “breakthrough” by UK Prime Minister Keir Starmer. The deal included relief on the steel and aluminium tariffs, but its implementation has not yet been finalized. The agreement was seen as a positive development by Paul Nowak, the general secretary of the Trades Union Congress (TUC), who said the deal “takes us back from the brink and many workers will breathe easier as a result.” This came amid fears that thousands of British jobs could be lost if the steel and aluminium tariffs were fully implemented.
On Tuesday, UK Business Secretary Jonathan Reynolds met with White House trade representative Jamieson Greer in Paris. According to the Department for Business and Trade, Reynolds and Greer discussed the desire to implement the deal struck between London and Washington as soon as possible and committed to working closely to make it happen.
The White House press secretary, Karoline Leavitt, was asked about the availability of the full text of the deal. She told reporters on Tuesday, “There’s most definitely text with this deal, there is language that this side has seen. You’ll have to ask the UK parliament why they haven’t seen it from their own government, I obviously can’t answer that question.”
The decision to spare the UK from the higher tariffs is seen as a significant step in the ongoing trade negotiations between the two countries. While the current 25% tariffs remain in place, the potential for further increases has been averted for now. However, the uncertainty surrounding the final implementation of the trade deal continues to be a concern for businesses on both sides of the Atlantic.
The UK government remains optimistic about the future of the trade relationship with the US and is committed to working towards the complete removal of the tariffs. The steel industry, while relieved by the current decision, is urging both governments to finalize the deal as soon as possible to provide clarity and stability for businesses and workers.
As the UK and the US continue to navigate the complexities of their trade relationship, the focus remains on protecting jobs, supporting key industries, and ensuring a fair and mutually beneficial agreement. The coming months will be crucial in determining the final outcome of these negotiations and the long-term impact on the economies of both countries.
