The White House has signalled that the UK will be spared the 50% steel and aluminium tariffs that came into effect on Wednesday, triggering relief among British steelmakers.
In a statement, the US president, Donald Trump, said he had decided to “provide different treatment” to the UK after a deal that was struck between Washington and London last month – but is yet to be signed. The executive order signed by Trump on Tuesday evening will still raise import taxes for US companies buying from other countries.
Levies will remain at 25% for imports from Britain, although the higher 50% could still come in “on or after 9 July” if the administration “determines that the United Kingdom has not complied with relevant aspects” of the deal.
The business secretary, Jonathan Reynolds, met the White House trade representative, Jamieson Greer, in Paris on Tuesday.
According to the Department for Business and Trade, Reynolds and Greer discussed a desire to implement the deal struck between London and Washington as soon as possible, and committed to working closely to make it happen.
The reduction in tariff rates for UK steelmakers was “in the short-term … good news” said Rowan Crozier, the chief executive of Brandauer, a metal stamping specialist.
However, the boss of the Birmingham-based company told BBC Radio 4’s Today programme that continual changes to tariff policy were damaging and creating uncertainty for business.
“It is quite far-reaching because essentially our customers are less confident in forward planning or ordering what they need,” Crozier said.
He added that the company was having to contact its US customers directly, and called on the UK government to finalise the trade deal with the US in the coming weeks.
Last month the UK and US agreed a trade deal described as a breakthrough by the UK prime minister, Keir Starmer, which included relief on the steel and aluminium tariffs, but the implementation has not yet been finalised.
“I think the government have done well to keep us out of it for now but there is a definite deadline they have got to work to now to take away this uncertainty and get those tariffs to zero,” Crozier said.
The industry body UK Steel welcomed Trump’s decision to keep tariffs at 25% but said uncertainty remained over the final rate.
Its director general, Gareth 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.”
Steel companies had been considering whether to turn shipments around in the mid-Atlantic to try to sell products in Europe rather than pay 50% tariffs. There were also questions over whether products immediately shipped back from the US would be liable to the levies.
after newsletter promotion
Liam Bates, the president for long products at Marcegaglia Stainless Sheffield, told the Guardian that the UK industry was relieved. He said: “Storm in a teacup springs to mind.”
However, he added that “this is still a wider issue as anything not exclusively UK is attracting 50%” tariffs. It “also does require this 0% deal is now done”.
A UK government 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.”
Paul Nowak, the general secretary of the TUC, said the exemption “takes us back from the brink and many workers will breathe easier as a result” amid fears that thousands of British jobs could be lost if the steel and aluminium tariffs came into full force.
The White House press secretary, Karoline Leavitt, was asked if there was a text of the full deal ready to be released, and 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.”
