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UK industry received a welcome exemption from the doubling of US steel and aluminium tariffs by Donald Trump, providing relief amidst delays in implementing the US-UK trade agreement. The surprise decision by the Trump administration to exclude Britain from the tariff increases came as UK leaders urged swift action from Sir Keir Starmer to finalize the trade pact and eliminate the levies entirely.
Trump’s executive order announced the new tariffs, sparing the UK from a 50% levy on steel and aluminium to facilitate the implementation of the US-UK Economic Prosperity Deal. However, British metal producers will still face a 25% tax until the agreement is fully enacted.
The UK will be granted a zero-tariff quota for steel if it meets US security requirements by excluding China from its supply chains. Despite the signing ceremony involving Starmer and Trump in May, negotiations to implement the deal have been prolonged.
The UK exemption from increased tariffs is contingent on compliance with the trade deal, with Trump reserving the right to escalate tariffs to 50% if the UK fails to meet relevant aspects of the agreement.
Following talks between UK Business Secretary Jonathan Reynolds and US counterpart Jamieson Greer, both sides are committed to expediting the agreement’s implementation. Reynolds emphasized the importance of swift action to remove the 25% US tariffs on UK steel.
The trade pact also promises a reduction in US tariffs on up to 100,000 British car exports from 25% to 10%. However, industry leaders expressed frustration over the delays, emphasizing the urgent need for the trade accord to be operationalized.
UK industry, particularly steel and automotive sectors, has been significantly impacted by the tariffs, leading to uncertainty and financial strain. The UK government’s efforts to finalize the trade pact are crucial to restoring stability and facilitating trade between the two nations.
Despite the challenges and uncertainties, both the US and the UK remain committed to strengthening their economic ties and fostering mutually beneficial trade relations.
The UK’s concessions to the US, including tariff-free exports of beef and bioethanol, reflect a willingness to compromise and facilitate trade agreements that benefit both countries.