UK-US trade deal could take effect within weeks says starmer

Keir Starmer has announced that a trade deal with the United States could come into force within weeks, following assurances from the White House that the UK will be exempt from the steep 50 per cent tariffs on steel and aluminium. The tariffs, which were imposed this week, will remain at 25 per cent for British imports. However, the reduced rate could still rise to 50 per cent after 9 July if the UK is deemed not to have complied with the terms of the agreement.

Speaking in the House of Commons, Starmer emphasised the significance of the deal, declaring, “We are the only country in the world not paying the 50 per cent tax on steel and we are working to bring that 25 per cent down to zero.” Business Secretary Jonathan Reynolds reinforced this commitment, stating that critical steps to implement the agreement are being taken swiftly.

The deal is set to provide relief to the UK steel and aluminium industries, with the White House’s recent executive order sparing Britain from broader tariff measures applied elsewhere. Reynolds outlined ongoing efforts to reduce the 25 per cent rate to zero, identifying key sectors like automotive and aerospace as integral to discussions. The wider negotiations also aim to achieve reciprocal tariff reductions to prevent trade barriers from escalating between the two nations.

The uncertainty surrounding tariffs has caused significant disruption in the UK steel sector. Rowan Crozier, Chief Executive of Brandauer, a metal-stamping specialist, highlighted the damaging effects of inconsistent tariff policies, which he claims undermine business confidence and impede forward planning. He called for the government to finalise the deal as quickly as possible to eliminate ongoing uncertainty.

Industry bodies, including UK Steel, have expressed cautious optimism. Gareth Stace, Director General of UK Steel, welcomed the reduced tariff rate but stressed the need for the government to expedite negotiations to secure a zero-tariff agreement. He indicated that the US is an essential export market for UK steelmakers and highlighted the broader implications for trade relations between the two allies.

The deal represents a critical moment in transatlantic relations, particularly as steel companies had begun exploring alternative routes and markets to mitigate potential losses from increased tariffs. The commitment to eliminating these levies has been hailed as a positive step for safeguarding employment and stabilising the British steel and aluminium industries in the near term.