US President Donald Trump has officially raised tariffs on steel and aluminium imports, increasing the rate from 25 to 50 percent, effective today. This move aims to help the struggling US metals industry by limiting foreign competition.
The UK, however, has been exempt from the tariff hike, provided the government acts swiftly to finalise the trade agreement announced on May 8th.
Under this agreement, the UK is eligible for a zero-tariff quota on steel, as long as it meets specific US security requirements, such as excluding China from its steel supply chains.
Despite this exemption, the implementation of the deal has encountered delays, creating uncertainty for UK businesses. British steel producers will continue to face a 25 percent duty rate until the deal is fully executed.
Trump’s executive order also allows for future tariff increases. If the UK does not adhere to the terms of the agreement, the US could raise steel and aluminium tariffs back to 50 percent.
This change could take effect as early as July 9th, putting UK steel producers under pressure as they face a looming deadline and uncertainty until the trade deal is finalised.
