Prime Minister Keir Starmer has expressed hope that a trade deal struck with the US last month could take effect 'in a couple of weeks', after the White House signalled the UK would be spared 50% steel and aluminium tariffs. Speaking in the House of Commons on Wednesday, Starmer said the agreement would be implemented 'within a very short time'.
US President Donald Trump's executive order raised import taxes for US companies buying from other countries, but levies on UK imports will remain at 25% for now. However, the higher 50% rate could be applied 'on or after 9 July' if the US administration determines the UK has not complied with relevant aspects of the deal.
During Prime Minister's Questions, Conservative leader Kemi Badenoch challenged Starmer over the uncertainty. Starmer responded: 'We are the only country in the world that isn't paying the 50% tax on steel and that will be coming down. We are working on it, to bring it down to zero; that is going to happen.'
Business Secretary Jonathan Reynolds confirmed that 'essential steps' were being progressed 'at pace' to finalise the deal, which would eliminate tariffs on steel and cars. Reynolds spoke after meeting the White House trade representative in Paris, emphasising that 'steel and aluminium is part of that, alongside automotive, aerospace and other critical sectors'.
Industry figures welcomed the respite but urged swift finalisation. Rowan Crozier, CEO of Birmingham-based Brandauer, called the reduction 'good news' but warned that continual tariff changes create uncertainty. UK Steel director general Gareth Stace said: 'We need the UK government to apply rocket boosters to those negotiations to get that deal over the line and remove tariffs altogether.'
Liam Bates of Marcegaglia Stainless Sheffield expressed relief, noting that steel companies had been considering turning shipments around in the mid-Atlantic to avoid the 50% tariffs. The deal is seen as crucial for protecting jobs in Scotland and other steel-producing regions.
