A high-stakes post-Brexit trade deal specifically designed to rescue the UK's beleaguered steel industry has been unceremoniously abandoned, the Daily Mail can reveal. This collapse dashes Prime Ministerial boasts of a major breakthrough and leaves the sector facing an existential crisis.
The anticipated agreement, which was a key goal of the UK's negotiating team, would have seen the United States lift punishing tariffs on British steel. The abandonment of this deal deals a devastating blow to communities and workers already reeling from planned job cuts.
The Promise Versus The Reality
Ministers had previously heralded the potential agreement as a landmark achievement of Global Britain's independent trade policy. It was positioned as a tangible benefit of Brexit, promising to open up lucrative American markets and level the playing field against international competitors.
However, despite high-level talks and a major diplomatic push, the deal has now been shelved by US officials. This leaves UK steel exporters at a significant disadvantage, still subject to the 25% tariff first imposed by the Trump administration under national security grounds—a tax that EU producers have already been exempted from.
Port Talbot and the Human Cost
The news is a hammer blow for towns like Port Talbot, the heart of the UK's steel production. The industry is already confronting massive layoffs and an uncertain future, making the failure to secure this tariff relief particularly bitter.
Local MPs and union leaders have expressed fury, accusing the government of over-promising and under-delivering on a matter critical to the nation's industrial future and thousands of livelihoods.
A Diplomatic Setback
The deal's failure also marks a significant diplomatic setback. It was a central pillar of the UK's strategy to prove it could secure bespoke agreements outside of the European Union. The inability to close this deal with a key ally raises serious questions about the UK's leverage in future trade negotiations.
All eyes will now be on Labour leader Sir Keir Starmer and his team. Should he enter Downing Street, he will immediately inherit this stalled negotiation and the immense pressure to secure a better outcome for Britain's industrial base.
The government has yet to issue a formal statement on the collapse of talks, but insiders confirm that the US side has moved on to other priorities, leaving the UK's steel hopes out in the cold.
