British steelmakers avoid immediate U.S. tariffs, but face increasing uncertainty as deals are pending
After President Trump signed an executive order confirming that the UK will maintain its existing 25% tariffs, while a new bilateral steel agreement will be finalized, British steel manufacturers have been damaged by the 50% import tariffs suffered by the United States.
The temporary probation remains despite earlier warnings that UK steel exports will face a sharp rate hike on Tuesday as the White House imposes double tariffs on imports from countries not covered by exemptions. The UK currently falls under the initial 25% tariff in March, but has been granted a moratorium on executions – but until July 9, the Economic Boom Agreement (EPD) between the UK and the United States must conclude.
British Steel said in a statement that the decision provided a “time-limited vote of confidence” among British steel manufacturers – but warned that there was a lack of clarity around the final tariff rate and the risk of timing that created a transatlantic trade stability, while tight U.S. American buyers may seek supply elsewhere.
Gareth Stace, Director-General of the UK Steel, welcomes the breathing chamber: “The president’s decision does not impose a 50% tariff on British steel manufacturers, but keeps the tax at 25% while the UK-US transaction is completed.
He added that the maintained 25% interest rate would save UK producers from instant damage to instant freight, but stressed that now the hesitation of US customers is now shrouded in big. “Uncertainty remains on time and final tariff rates, and now, whether US customers should risk placing UK orders.”
The United States is the second largest steel export market in the UK, worth about £400 million per year, accounting for 9% of the UK’s total steel export value. Trade relations are expected to improve after the announcement of the UK’s boom agreement in May, which promises to repeal existing tariffs and replace them with a quota-based system that allows tax-free trade within set limits. However, the transaction has not been completed and implemented legally, putting exporters in a dilemma.
This situation underscores the delicate balance bill facing the UK government, which must maintain transactional relations with Washington and protect the beleaguered domestic steel industry, facing intense global competition, low demand and increased import pressures.
Stace called for urgency in both areas: “The United States and the United Kingdom must urgently turn May deals into reality to completely eliminate tariffs. At a time when our steel industry is already frustrated, with oversupply and weak demand globally, we must continue to work together to support sales levels in the second-important export market.”
He also renewed his call for stronger domestic trade defense measures, which suggests steel imports from outside the EU. “There is clear evidence that the trade transfer gear shifted to the UK after the EU strengthened its trade defense, and now we have to do the same. Imports are flooding into the UK market, curbing steel prices and taking up market share. We must not ignore our domestic market while working to stabilize exports to the US.”
The UK government has not confirmed a timetable for the final signing of the Steel Trade Agreement, but the weeks until the July 9 deadline have increased pressure to give the industry a long-term certainty. Without it, industry leaders warn that job losses and layoffs may follow – a vulnerable recovery in the UK manufacturing sector could be at risk.
