The UK steel industry is breathing a sigh of relief today after being spared from Donald Trump’s latest trade war salvo.

The US president is offering ‘different treatment’ to Britain after doubling tariffs on imports from other countries to 50 per cent.

However, levies on UK steel and aluminium will remain at 25 per cent, as a Transatlantic trade agreement heralded by Keir Starmer last month has still not been finalised. That should create quotas to exempt most of the exports altogether.

The White House has threatened that charges could still be ramped up to 50 per cent if it deems the PM has not ‘complied’ with the broad terms of the pact. 

Trade Secretary Jonathan Reynolds met US officials in Paris last night amid a scramble to establish whether the UK would be covered. 

The Government said it was ‘pleased’ the steel industry ‘will not be subject to these additional tariffs’.

Gareth Stace, the director general of UK Steel, said that Mr Trump’s decision is a ‘welcome pause’.

Donald Trump is offering 'different treatment' to Britain after doubling tariffs on imports from other countries to 50 per cent

Donald Trump is offering ‘different treatment’ to Britain after doubling tariffs on imports from other countries to 50 per cent

Levies on UK steel and aluminium will remain at 25 per cent, as a Transatlantic trade agreement heralded by Keir Starmer last month has still not been finalised

Levies on UK steel and aluminium will remain at 25 per cent, as a Transatlantic trade agreement heralded by Keir Starmer last month has still not been finalised

The White House has threatened that charges could still be ramped up to 50 per cent if it deems the PM has not 'complied' with the broad terms of the pact

The White House has threatened that charges could still be ramped up to 50 per cent if it deems the PM has not ‘complied’ with the broad terms of the pact

He added: ‘Continued 25 per cent tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike.

‘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 reality to remove the tariffs completely.’

The eye-watering tariff on steel and aluminium from other nations came into force at 12.01am Washington DC time, shortly after 5am UK time. 

The order published by the White House said Mr Trump has ‘further determined that it is necessary and appropriate to allow for the implementation of the US-UK Economic Prosperity Deal of May 8, 2025 (EPD), and to accordingly provide different treatment, as described below, for imports of steel and aluminium articles, and their derivatives, from the United Kingdom’.

The document said the rate will stay at 25 per cent for now, but added ominously: ‘On or after July 9, 2025, the Secretary may adjust the applicable rates of duty and construct import quotas for steel and aluminium consistent with the terms of the EPD, or he may increase the applicable rates of duty to 50 percent if he determines that the United Kingdom has not complied with relevant aspects of the EPD.’

The Government has pledged to keep working with the US to get the agreement up and running, and the 25 per cent tariff rate ‘removed’.

A spokesman said: ‘The UK was the first country to secure a trade deal with the US earlier this month and we remain committed to protecting British business and jobs across key sectors, including steel as part of our Plan for Change.

‘We’re pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs. We will continue to work with the US to implement our agreement, which will see the 25% US tariffs on steel removed.’

There is uncertainty about the future of Mr Trump’s tariffs after a US court last week ruled many of them unlawful, before an appeals court reinstated the levies pending a further hearing.

Tata Steel director Russell Codling told MPs yesterday it was extraordinarily difficult’ to plan at a time when there was so much uncertainty.

Trade Secretary Jonathan Reynolds met US officials in Paris last night amid a scramble to establish whether the UK would be covered

Trade Secretary Jonathan Reynolds met US officials in Paris last night amid a scramble to establish whether the UK would be covered

The US hailed the trade deal with the UK saying it had secured better terms

The US hailed the trade deal with the UK saying it had secured better terms

‘The 25 per cent tariff as it was applied earlier in the year was a big shock to us … then the shock over the weekend of seeing 50 per cent applied was really quite devastating to be able to plan where do we go next, what is the future for our business, the future for our customers,’ he told MPs on the Business and Trade Committee.

‘We have longstanding arrangements with our customers in the US, there are not customers we just obtain on a spot basis – they rely on us for their business.’

Asked if the deal that Sir Keir agreed with Trump afforded them any protection, he replied: ‘Not at this moment, no.

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