The UK has avoided the latest tariff hike from US President Donald Trump — for now. Trump signed an executive order doubling tariffs on steel and aluminium from 25% to 50%. However, the UK will continue facing the lower 25% rate.

Exemption Linked to Recent Trade Deal

This temporary relief is tied to the US-UK Economic Prosperity Deal (EPD), signed on May 8, 2025. Although the agreement promises to remove these tariffs, it has not come into effect yet. Until then, UK exporters must still pay the 25% duty. They could also face the 50% hike if the deal falls apart.

UK Government Responds

A UK government spokesperson said, “We are committed to protecting British business and jobs.” The government will work with the US to implement the agreement and plans to present the required legislation to Parliament “in due course.”

Trump Issues a Warning

President Trump said the UK needs “different treatment” under the EPD. However, he warned that the US may raise the tariff “on or after July 9, 2025” if the UK fails to meet its part of the deal.

Timeline of Tariff Changes

• Feb 10: Trump announced a 25% tariff on steel and aluminium.

• Mar 12: The new rates took effect.

• Apr 2: Most countries, including the UK, faced a 10% baseline tariff.

• May 8: US and UK agreed to reduce some levies.

• Jun 4: Trump doubled tariffs for others but kept UK's rate at 25%.

Industry Faces Confusion

The US is the world’s second-largest steel importer, after the EU. Around 7% of the UK’s steel exports go to the US. This makes any tariff change crucial for UK producers.

UK Business Secretary Jonathan Reynolds met US Trade Representative Jamieson Greer in Paris before the exemption was granted.

Industry Leaders Express Concern

Gareth Stace, director-general of UK Steel, welcomed the move but warned of risks. “The UK’s exemption from the 50% tariff was a welcome pause, but uncertainty remains... US customers will be dubious over whether they should even risk making UK orders.” He urged both governments to finalize the May deal as soon as possible.

UK Manufacturers Feel the Heat

Rowan Crozier, CEO of Birmingham’s Brandauer, said UK firms now have a slight edge. But he also blamed confusion for hurting confidence. “That’s one thing that the Trump administration continues to do — create confusion... Our customers are less confident in forward planning.” Crozier explained that many US clients must still buy from them despite the tariffs because of product specialization.

US Experts Weigh In

Alan Auerbach from the University of California said buyers would suffer short-term losses. “In the short run, buyers are simply going to have to pay more for the steel that they’re buying from foreign sources.” He added that without long-term clarity, companies won’t invest in US steel production.

Opposition Criticizes Government

Shadow Business Secretary Andrew Griffith blamed Labour for the situation. “Labour's botched negotiations have left businesses in limbo and this country simply cannot afford their continuing failure.”