Keir Starmer handed five-week reprieve as Trump pauses 50% steel tariffs on UK
Donald Trump has handed the UK a five-week reprieve from new 50 per cent tariffs on steel and aluminium exports.
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The US president signed an executive order on Tuesday, declaring UK exporters would be given time to finalise the details of the trade deal agreed last month.
In the order, the White House warns that if the UK fails to comply with the “relevant aspects” of the Economic Prosperity Deal, the US has the right to “increase the applicable rates of duty to 50 per cent … on or after July 9”.
It adds: “I have further determined that it is necessary and appropriate to allow for the implementation of the US-UK Economic Prosperity Deal of May 8, 2025, and to accordingly provide different treatment for imports of steel and aluminium articles, and their derivatives, from the United Kingdom.”
The 50% tariff rate for imports of steel and aluminium from other nations came into force at 12.01am Washington DC time on Wednesday, shortly after 5am in the UK.
The Government said on Tuesday night they were “pleased” that the industry “will not be subject to these additional tariffs”.
Gareth Stace, the director general of UK Steel, said that Trump’s decision is a “welcome pause”.
He said: “Continued 25% 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.”
Prime Minister Sir Keir Starmer’s trade deal with the US, struck last month, included relief on the steel and aluminium tariffs, but it has not yet come into force.
Officials have been working to try and finalise the details of the agreement.
A Government spokesperson 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.”