A proposed agreement to remove tariffs on UK steel exports to the United States has been postponed ahead of U.S. President Donald Trump’s second visit to Britain, according to the BBC.
The possibility of zero tariffs, once a primary objective of Prime Minister Keir Starmer’s administration, has diminished, leaving the UK steel producers subject to a persistent 25% duty at the U.S. border. This outcome has sparked widespread outrage among industry leaders and political figures.
The decision signals a substantial setback to the industry, which has already been grappling with serious financial challenges over the past few years.
For several months, UK ministers and trade negotiators worked to reach an agreement with the U.S. to eliminate the longstanding 25% tariff on British steel, a levy previously described as devastating by industry leaders.
The deal was seen as a vital support for the UK steel industry, which exports roughly 6% of its output and 9% of its value to the U.S. market.
The suspended deal would have granted zero tariffs on a limited volume of British steel exports, with room for expansion once U.S. concerns over the origin of UK raw materials were resolved. In its place, UK ministers are now aiming to secure a lasting commitment that tariffs on British steel will remain capped at 25%, while many other nations continue to face a significantly higher rate of 50%.
Meanwhile, in response to the ongoing financial strain, the government has assumed control of Chinese-owned facilities in Scunthorpe, while Liberty Steel’s sites in Rotherham and Stocksbridge also came under state management last month. Officials stated they are continuing negotiations with the U.S. to provide stability for the UK steel sector, safeguard skilled jobs, and promote economic growth.
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