Donald Trump is threatening to maintain 25% tariffs on UK steel imports unless Britain provides specific guarantees about the Indian-owned Port Talbot plant in south Wales, sources have told the Guardian. The demand comes despite a broader trade deal signed on Monday that reduces tariffs on UK car and aerospace exports.
The agreement, finalised by Trump and Prime Minister Keir Starmer on the sidelines of the G7 summit in Canada, excluded steel and aluminium. US officials are concerned that Tata Steel, which closed its Port Talbot blast furnaces last year, now imports raw materials from abroad until a new electric arc furnace opens in 2027.
Under US rules, steel must be “melted and poured” in the country of origin. Tata sources its raw materials from its own sites in the Netherlands and India, not from China. US trade officials are seeking guarantees on when imports will cease and how supply chains are tracked.
Starmer’s business adviser, Varun Chandra, will lead a delegation to Washington next week. Officials are confident of a final deal next month. The UK government is the only country exempt from the global 50% tariff on steel and aluminium imposed by the Trump administration.
Alasdair McDiarmid, assistant general secretary of the steel union Community, warned that uncertainty threatens jobs. “Without a full exemption, some of our leading steel businesses could be left behind,” he said.
