UK Avoids Trump’s 50% Steel Tariff Hike – But Uncertainty Looms Over Trade Deal

UK Avoids Trump’s 50% Steel Tariff Hike – But Uncertainty Looms Over Trade Deal

What Happened

The UK has been temporarily spared from a steep hike in US steel and aluminium tariffs, following a new executive order signed by former President Donald Trump. While tariffs on other countries doubled from 25% to 50% starting Wednesday, the UK will remain at 25%—for now.

The exemption stems from the UK-US Economic Prosperity Deal (EPD), agreed in May but not yet implemented. Until that pact is formalised, UK steel exporters still face tariffs, and there’s a risk the UK could also face the 50% hike if the agreement collapses.

President Trump said the UK required “different treatment” due to the deal signed on 8 May 2025, but warned that tariffs could still rise after 9 July 2025 if the UK fails to uphold its end of the agreement.

The UK government said it is “committed to protecting British business and jobs”, while Conservatives branded the announcement a “fresh tariff blow”. The Business Secretary, Jonathan Reynolds, had met with US Trade Representative Jamieson Greer in Paris just before the order was signed.

What Next

For now, the UK is spared—but the clock is ticking. The government must pass legislation to implement the EPD and finalise the agreement to fully remove the tariffs.

UK Steel’s Director General, Gareth Stace, welcomed the temporary relief but warned of “uncertainty over timings and final tariff rates”. He said US buyers may now hesitate to order from the UK until there’s more clarity.

With the US making up 7% of UK steel exports, the stakes are high. Shadow Business Secretary Andrew Griffith criticised Labour’s handling of the situation, calling it “botched negotiations” that leave businesses “in limbo”.

If the deal isn’t enacted by July, the UK could still see its tariffs double, putting added pressure on British exporters and manufacturing jobs.