THE UK has been temporarily excluded from a new US tariff hike that doubles duties on steel and aluminium imports from 25 per cent to 50 per cent.
Under an executive order signed by US president Donald Trump, the increased tariffs came into effect on Wednesday, but the UK rate remains at 25 per cent for now, BBC reported.
The exemption is linked to the US-UK Economic Prosperity Deal (EPD) signed on May 8, 2025. However, Trump has warned the higher rate could apply to the UK from 9 July if it is found not to have complied with the agreement.
The UK government said it aimed to implement the May deal “as soon as possible” to remove the tariffs entirely. A government spokesperson said it remained “committed to protecting British business and jobs”. But the Conservative Party described the move as a “fresh tariff blow” and criticised Labour for leaving “businesses in limbo”.
Imports of UK steel to the US are worth over £400 million and account for around 7 per cent of the UK’s steel exports. Business secretary Jonathan Reynolds met US Trade Representative Jamieson Greer in Paris on Tuesday to discuss the matter.
UK Steel chief executive Gareth Stace told BBC the sector had faced “a rollercoaster ride of uncertainty” and hoped the May agreement would soon be finalised. Rowan Crozier of Birmingham-based Brandauer said the carve-out helped but added that “far reaching” uncertainty was harming business planning.
The incident occurred on the same day Labour leader Sir Keir Starmer addressed the audience at London Tech WeekGetty Images