In a major breakthrough for transatlantic trade, the UK and US have finalised a deal to remove contentious tariffs on British steel and aluminium imposed during Donald Trump's presidency. The agreement, announced after months of negotiations, marks the end of a bitter four-year trade dispute that has strained relations between the two allies.
A Win for British Industry
The resolution comes as welcome news for UK steel producers who have faced 25% tariffs on exports to America since 2018. Aluminium manufacturers, previously hit with 10% duties, will also benefit from the new arrangement. Industry leaders have hailed the move as critical for protecting jobs and maintaining competitiveness in challenging global markets.
Quotas and Compromises
While the deal eliminates most tariffs, it introduces a quota system allowing limited volumes of duty-free steel imports. The arrangement mirrors similar compromises reached earlier between the US and European Union. UK Trade Secretary Anne-Marie Trevelyan emphasised that the agreement provides "certainty and stability" for British businesses while safeguarding domestic producers on both sides of the Atlantic.
Ongoing Challenges
Despite the breakthrough, analysts warn that structural issues in the UK steel industry remain unresolved. High energy costs and global overcapacity continue to pressure manufacturers. The government faces calls for further support as the sector transitions toward greener production methods required to meet climate targets.
The deal takes effect immediately, with both nations pledging to work closely on addressing shared concerns about global steel overproduction, particularly from China.
