US Doubles Steel and Aluminium Tariffs, UK Receives Temporary Exemption

In a significant move impacting global trade, the United States has announced it will increase tariffs on imported steel and aluminium from 25% to 50%. However, the UK has been granted a temporary exemption, allowing it to maintain the current 25% tariff rate for now.

This exemption comes amid ongoing trade negotiations between the US and the UK. Earlier this May, both countries agreed in principle to reduce tariffs on UK steel and aluminium to zero, but the deal is yet to be ratified. According to the latest announcement, the agreement must be finalized by July 9. If not completed by that date, UK steel imports could face the full 50% tariff from mid-July.

The steel industry and government officials had expected the UK to be included in the increased tariffs until the trade agreement was formally enacted. The temporary exemption has thus brought a welcome relief to UK trade officials and steel manufacturers, though uncertainty remains.

Once the agreement is finalized, the UK will benefit from zero tariffs but under a quota system limiting the volume of imports. This arrangement aims to balance the interests of US steel producers while opening trade with the UK.

With the July 9 deadline fast approaching, industry leaders are closely monitoring developments, aware that tariffs could either remain moderate or escalate sharply depending on the outcome of the negotiations.