The UK steel industry faces a cloud of uncertainty despite being temporarily exempted from a sweeping U.S. tariff hike announced by President Donald Trump.
In an executive order signed Tuesday, Trump doubled tariffs on imported steel and aluminium from 25% to 50%, a move that took effect on Wednesday. However, the United Kingdom received a provisional reprieve, with tariffs on its steel exports to the U.S. remaining at 25%—for now.
The exemption stems from a yet-to-be-implemented UK-U.S. tariff agreement signed in May, aimed at phasing out steel and aluminium duties altogether. Until that deal is ratified in Parliament and put into force, UK exporters remain in limbo.
Business Secretary Jonathan Reynolds met with U.S. Trade Representative Jamieson Greer in Paris in a last-ditch effort to preserve market access. Still, Trump warned that unless the UK complies with the terms of the Economic Prosperity Deal (EPD) by July 9, the exemption may be revoked.
“This is a welcome pause, but the uncertainty is damaging,” said Gareth Stace, director general of UK Steel. “American buyers are now hesitant to commit to UK orders amid fears that tariffs could snap back to 50% at any time.”
The U.S. is a key market for British steel, accounting for around 7% of exports. The threat of fluctuating tariffs is already impacting confidence in the sector.
A UK government spokesperson said it remains “committed to protecting British business and jobs” and vowed to push the tariff-cutting legislation through Parliament “in due course.” However, critics warn that time is running out.
Shadow Business Secretary Andrew Griffith laid blame at the government’s feet, saying: “Labour’s botched handling of these negotiations has left British industry hanging. Businesses can’t plan in a climate of constant diplomatic missteps.”
As the July deadline looms, both governments face growing pressure to turn promises into policy—and to stabilise a transatlantic trade relationship rocked by political brinkmanship.
