The UK has temporarily avoided the full impact of US President Donald Trump’s executive order doubling steel and aluminum tariffs from 25% to 50%.

While the order increases import taxes for US firms sourcing these metals internationally starting Wednesday, the UK’s levy remains at 25%.

However, this reprieve is contingent upon the timely implementation of a deal signed last month with the Trump administration, aiming to eliminate these tariffs entirely. Should this agreement fail to materialize, the higher tariff rate could be imposed on the UK.

Currently, UK steel imports to the US face tariffs. The UK government, stating its commitment to safeguarding British businesses and jobs, aims to enact the agreement swiftly to remove them.

The order cited the US-UK Economic Prosperity Deal (EPD) signed on May 8, 2025, as justification for the UK’s distinct treatment. However, it also included a caveat: the tariff increase to 50% might occur on or after July 9, 2025, if the UK’s compliance with the EPD is deemed insufficient.

This exemption follows a meeting between Business Secretary Jonathan Reynolds and US Trade Representative Jamieson Greer in Paris on Tuesday.

Last month’s US-UK agreement includes reducing or eliminating tariffs on various goods; specifically targeting zero tariffs on UK steel and aluminum and a 10% tariff on cars. This agreement is pending implementation.

The US, after the EU, is the world’s largest steel importer, primarily sourcing from Canada, Brazil, Mexico, and South Korea.

For the UK, the US represents approximately 7% of steel exports, exceeding £400 million annually, making tariffs significantly impactful.

The UK also houses specialists in steel products heavily reliant on transatlantic trade. Gareth Stace, UK Steel’s chief executive, described the recent situation as a “rollercoaster ride,” expressing cautious relief at the current 25% tariff.

He emphasized the industry’s desire for complete tariff removal as agreed in May and voiced optimism regarding the deal’s timely execution.

This would grant UK steel a competitive advantage against the EU and other nations. However, Stace also acknowledged the potential displacement of domestic producers due to steel diverted from the US to the UK and other markets.

Rowan Crozier, CEO of Brandauer, a Birmingham-based metal-stamping firm, noted that while the carve-out prevents UK firms from facing the same import tariffs as global competitors, the pervasive uncertainty is more damaging.

He highlighted the Trump administration’s strategy of creating confusion to facilitate deal-making, resulting in reduced customer confidence in forward planning and order placement.

President Trump’s imposition of tariffs on numerous countries aims to promote the purchase of American-made goods. Tariffs are taxes on imported goods.

While Trump anticipates a boost in US manufacturing and jobs, many economists warn of potential price increases for consumers.

Alan Auerbach, director of tax policy and public finance at UC Berkeley, stated that increased US steel production won’t be immediate, leading to higher prices for buyers in the short term.

Although future US production is possible, the ongoing tariff uncertainty hinders investment decisions.

Shadow business secretary Andrew Griffith criticized Labour’s handling of negotiations, stating that businesses are left in limbo due to their perceived failings.

While UK steel producers may benefit from zero tariffs, securing this trade carve-out involved reducing tariffs on certain US beef and ethanol products. This impacts UK wheat farmers, major suppliers to the ethanol market.

BBC News business editor Simon Jack notes that UK efforts to shield these industries could be interpreted as a setback.

The UK has temporarily avoided President Trump’s executive order doubling steel and aluminum tariffs from 25% to 50%.

Effective Wednesday, the order increases import taxes for U.S. firms sourcing these metals internationally, but the UK levy remains at 25%.

However, this exemption hinges on the successful implementation of a May 2025 agreement with the Trump administration to eliminate steel and aluminum tariffs. Failure to enact this agreement could expose the UK to the higher rate.

While UK steel imports currently face tariffs, the government aims for swift implementation of the agreement to remove them. A spokesperson affirmed the government’s commitment to safeguarding British businesses and jobs, while the Conservative party criticized the order as a setback, blaming the Labour party for creating uncertainty for businesses.

Trump justified the UK’s exception citing the U.S.-UK Economic Prosperity Deal (EPD), but added a caveat: tariffs could increase after July 9, 2025, should the UK fail to adhere to the EPD’s stipulations.

This UK exemption follows Business Secretary Jonathan Reynolds’ meeting with U.S. Trade Representative Jamieson Greer in Paris.

The May agreement between the U.S. and UK includes reducing or eliminating tariffs on various goods, including zero tariffs on UK steel and aluminum, and a 10% import tax on cars. This agreement is pending implementation.

The U.S., after the European Union, is the world’s largest steel importer, primarily sourcing from Canada, Brazil, Mexico, and South Korea. For the UK, the U.S. accounts for approximately 7% of steel exports, exceeding £400 million, highlighting the sector’s vulnerability to tariff changes.

The UK also supplies specialized steel products, largely to U.S. customers. UK Steel’s chief executive, Gareth Stace, described recent events as a period of intense uncertainty but expressed temporary relief over the 25%, rather than 50%, tariff. He emphasized the need for complete tariff removal as per the May agreement.

Achieving this would grant UK steel producers a competitive advantage over the EU and other nations. However, Stace noted the potential for steel diverted from the U.S. to displace domestic UK producers.

Rowan Crozier, CEO of Brandauer, a Birmingham-based metal-stamping firm, acknowledged the advantage of avoiding higher tariffs than global competitors, but warned of the detrimental effects of widespread uncertainty. He emphasized the Trump administration’s use of this uncertainty as a negotiating tactic, leading to reduced customer confidence and hampered forward planning.

President Trump’s imposition of tariffs on various nations aims to boost domestic consumption of American-made goods. Tariffs, taxes levied on imported goods, are intended to stimulate U.S. manufacturing and employment; however, economists warn of potential price increases for consumers.

Alan Auerbach, director of tax policy and public finance at the University of California, noted that increased U.S. steel production won’t be immediate, resulting in higher prices for buyers in the short-term. While increased production may eventually occur, the uncertainty surrounding future tariffs hinders investment decisions by firms.

Shadow business secretary Andrew Griffith criticized Labour’s handling of negotiations, stating that the resulting uncertainty is detrimental to British businesses.

While UK steel producers may benefit from zero tariffs, securing this trade concession involved reduced tariffs on certain U.S. beef and ethanol products. The UK ethanol market relies significantly on wheat farmers.

BBC News business editor Simon Jack suggests that UK efforts to protect these industries could be perceived as a step backward.

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