US President Donald Trump signed an executive proclamation late last night confirming his surprise announcement last week that tariffs (import taxes) on steel and aluminium will increase from 25% to 50%.
But the UK is exempt from the hike.
The proclamation has a specific carve-out for the UK due to the trade deal agreed last month.
A UK government spokesperson said in a statement: “The UK was the first country to secure a trade deal with the US earlier this month, and we remain committed to protecting British business and jobs across key sectors, including steel, as part of our plan for change.
“We’re pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs. We will continue to work with the US to implement our agreement, which will see the 25% US tariffs on steel removed.”
UK Steel said in a statement that the exemption from the tariff hike is “welcome”, and said Business Secretary Jonathan Reynolds “recognises that steel trade stability and security between our two nations is of utmost importance and has acted swiftly”.
But they go on to say that “uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders”.
“The US and UK must urgently turn the May deal into reality to remove the tariffs completely,” they added.
The trade body also calls on the government to “take decisive action domestically on trade defence”.
