The United Kingdom has been temporarily spared from the latest round of increased tariffs on steel and aluminium imports into the United States, which were imposed by US President Donald Trump’s executive order. The tariffs, which have been set to rise from 25% to 50% for most countries, have been a point of contention in global trade relations, and the UK’s carve-out from this increase has been met with cautious optimism in some quarters, while others remain concerned about the continued uncertainty in the trade landscape.
On June 4, 2025, the announcement from the Trump administration confirmed that the UK, despite being included in the broader tariff hikes, would maintain the 25% tariff rate for now. The temporary reprieve came after the UK and the US reached an agreement in May 2025 in which the US committed to reducing or removing certain trade levies, including tariffs on UK steel and aluminium. Under this deal, the tariffs on UK exports to the US were expected to be eliminated entirely, but the agreement has yet to come into effect. Until that time, the 25% tariff on UK steel and aluminium imports remains in place, with the possibility of the higher 50% tariff being implemented if the deal is not fully realized by mid-July.
The ongoing uncertainty surrounding the tariff situation has left businesses across the UK steel industry in a state of limbo. While many are relieved that the immediate 50% tariff increase does not apply to UK exports, they are still left with questions about the long-term impact of the trade relationship between the two nations. As the world’s largest importer of steel, the US remains a key market for UK producers, and the tariffs imposed by the Trump administration have had a significant impact on trade. The UK exports about 7% of its steel to the US, valued at over £400 million. This makes the tariffs on steel imports particularly damaging, as UK-based steel manufacturers and specialist product suppliers rely heavily on the US market for their business.
The United States had previously imposed tariffs on steel and aluminium imports from several countries, including the UK, as part of President Trump’s broader strategy to protect US manufacturing and boost domestic jobs. The Trump administration’s decision to raise tariffs on these critical materials, particularly in the midst of a global pandemic and economic uncertainty, has created challenges for manufacturers in the US who rely on foreign suppliers. While the goal of the tariffs is to increase US production of steel and aluminium, experts have warned that the immediate effect may be higher costs for US consumers and businesses.
Economists and business leaders alike have raised concerns about the long-term consequences of the tariff policies, with many pointing out that domestic production cannot be ramped up overnight. Alan Auerbach, a professor at the University of California who specializes in tax policy and public finance, commented that “more US steel production is not going to happen overnight.” Auerbach noted that the increased tariffs would lead to higher prices for consumers and businesses that rely on imported steel and aluminium. In the short term, it is expected that US buyers will face higher costs for these essential materials, which could ultimately hurt consumers and businesses alike.
Despite the temporary respite for the UK, the uncertainty surrounding future trade relations remains a concern for many businesses. Rowan Crozier, the chief executive of Brandauer, a metal-stamping firm based in Birmingham, expressed frustration with the ongoing uncertainty. He noted that while the carve-out for the UK meant that UK-based firms would not be facing the same heightened tariffs as their global competitors, the broader lack of clarity over the situation was the most damaging element. “Our customers are less confident in forward planning or ordering what they need,” he said. The ongoing confusion over the tariff situation has made it difficult for companies to plan for the future, as businesses wait for clarity on how the trade relationship between the US and the UK will evolve in the coming months.
The situation is further complicated by the broader political landscape. Shadow business secretary Andrew Griffith has sharply criticized the Labour government’s handling of negotiations, accusing them of leaving businesses “in limbo.” Griffith argued that the government’s failure to secure a lasting deal has left UK businesses exposed to the fluctuating tariff rates, which continue to disrupt trade and create uncertainty. “This country simply cannot afford their continuing failure,” Griffith said, pointing out that the uncertainty around trade deals is damaging to the broader UK economy.
The ongoing tariff situation has also raised concerns about the future of US-UK trade relations. The agreement reached in May 2025 was intended to be a step toward reducing trade barriers and fostering a more balanced trade relationship between the two countries. However, with the future of the agreement uncertain and the looming possibility of the tariffs being reinstated, many businesses are left with little clarity on how to plan for the future. While some are optimistic that the US and UK will eventually reach a more permanent solution, others fear that the current trade policies will continue to create volatility and instability.
In the meantime, UK steel manufacturers are hopeful that the agreement with the US will eventually come into effect, removing the tariffs entirely and giving businesses the certainty they need to plan for the future. Gareth Stace, the chief executive of UK Steel, expressed a degree of cautious optimism, noting that the industry could “breathe a temporary sigh of relief” with the 25% tariffs remaining in place for now. However, Stace emphasized that the ultimate goal for the industry is to see the tariffs removed entirely, as agreed upon in the US-UK deal. “We hope that deal can be made soon enough,” he said, reflecting the industry’s desire for a stable and predictable trade environment.
In the broader context, the trade dispute between the US and the UK highlights the complexities of global trade and the impact of protectionist policies. While the Trump administration’s goal of protecting US manufacturing may resonate with certain sectors of the economy, the broader effects on consumers, businesses, and international relations are more complicated. As both countries continue to navigate these challenges, the outcome of the ongoing negotiations will have significant implications for trade, jobs, and economic growth.
In conclusion, while the UK has temporarily been spared from the increased steel and aluminium tariffs imposed by the US, uncertainty remains at the heart of the ongoing trade relationship between the two nations. UK businesses are cautiously optimistic that the trade agreement signed in May 2025 will bring clarity and stability, but the possibility of the tariffs being reinstated continues to loom large. As both governments work toward a resolution, the global business community watches closely to see how this critical issue will unfold in the coming months. Until then, companies on both sides of the Atlantic are left navigating a challenging and uncertain economic landscape.
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