Keir Starmer drops hopes of zero tariff access for UK steel in US trade talks

Sir Keir Starmer has relinquished efforts to secure tariff-free access for British steel exports to the United States, shifting his focus towards confirming a permanent 25 per cent tariff arrangement as Donald Trump prepares for his visit to the United Kingdom. The British steel sector has long been burdened by a 25 per cent levy at the American border, sparking anticipation for relief after Sir Keir earlier claimed a provisional deal with President Trump would lower tariffs to zero. Despite those promises, comprehensive details were never finalised, and it has emerged that the government is now aiming to cement the current 25 per cent tariff rather than negotiate its removal.

At present, the UK remains the only nation enjoying the relatively favourable 25 per cent tariff. Other international steel exporters continue to face rates as high as 50 per cent when accessing the US market. A government spokesperson emphasised the enduring value of the UKUS partnership, describing the 25 per cent rate as proof of the UK’s status as a trusted provider of highquality steel. Efforts persist to bolster certainty for domestic industry and safeguard skilled employment as part of wider economic growth plans.

This shift represents a setback for Sir Keir, having previously declared victory in lowering tariffs to zero. Critics have now questioned the veracity of his earlier statements, with Andrew Griffith, the shadow secretary for business and trade, accusing the Prime Minister of either mishandling figures or misrepresenting facts. Industry representatives have also expressed concern. The British Chambers of Commerce warned the permanent tariff will undermine jobs across the steel sector and called on ministers to keep negotiations with US officials alive. Gareth Stace, director general of UK Steel, observed that while a zero tariff would have been preferable, a permanent 25 per cent rate offers stability and may provide a comparative advantage over rivals subject to steeper tariffs.

The British steel industry now faces intensified global competition, particularly from heavily subsidised producers flooding international markets. This has pressed authorities around the world to construct trade barriers for protection. Mr Stace underlined the necessity for the UK government to boost its own trade defences in order to shield the industry from these external pressures.

Speaking prior to his departure for the UK, President Trump indicated a willingness to consider further refinements to the existing trade agreement. He told reporters that there was scope to revisit aspects of the deal, stressing his intention to assist Britain.

The timeline of negotiations coincides with growing turbulence in the domestic sector. Only last month, government intervention was required after steel plants in Rotherham and Stocksbridge, previously part of Liberty Steel, fell under state control. With the steel trade landscape in flux, industry stakeholders continue to advocate for policies that sustain competitiveness and job security as the new arrangement with the United States is set in stone.