UK spared hike in US steel tariffs
By Abigail Townsend
Date: Wednesday 04 Jun 2025
(Sharecast News) - Donald Trump has exempted the UK from a new 50% tariff on steel and aluminium imports, after the rate was doubled overnight on Wednesday.
The US president first imposed a 25% levy on all steel and aluminium imports in March, one of the first salvos in his aggressive global trade war.
But in a proclamation released on Tuesday, Trump confirmed the rate would rise to 50% from midnight on Wednesday.
He first announced the planned increase at a rally last month, insisting it was would protect domestic manufacturers.
Canada, the largest supplier of steel and aluminium to the US, has already warned that the duties will cause "catastrophic" job losses and major disruption.
However, the duty on UK imports will remain at 25%, after the two countries signed a crucial trade deal last month.
The proclamation read: "I have further determined that it is necessary and appropriate to allow for the implementation of the US-UK Economic Prosperity Deal (EPD) and to accordingly provide different treatment...for imports of steel and aluminium articles and their derivatives."
The president warned, however, that the rate could yet be increased if he "determines that the United Kingdom has not complied with relevant aspects of the EPD" by a 9 July deadline.
While the deal has been agreed, it has yet to be implemented.
Gareth Stace, director general of trade body UK Steel, said: "The president's decision not to impose a 50% tariff on UK steelmakers, but to keep the rate at 25% while the UK-US deal is completed, is a welcome pause.
"However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders.
"The US and UK must urgently turn the May deal into a reality, to remove the tariffs completely."
Keir Starmer tweeted that the government would "always protect British businesses and British jobs".
Last month a US court ruled that Trump had exceeded his authority on 2 April, when he imposed tariffs on countries worldwide, and ordered the regime be dismantled.
Washington immediately appealed, and the order has been paused.
However, the ruling did not cover sector-specific tariffs, such as those on steel and aluminium and on cars.
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