London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Britain and US agree on steel tariffs as hopes of broader trade deal recede

Britain and US agree on steel tariffs as hopes of broader trade deal recede

Pact ends months of tensions but talks on full free-trade agreement remain far off
The UK has struck a deal with the US to remove tariffs on British steel exports, although trade experts warned a broader trade deal between the two countries remains far off.

The agreement was struck after UK’s international trade minister, Anne-Marie Trevelyan, met her counterpart, the US commerce secretary, Gina Raimondo, on Tuesday evening in Washington.

The deal ended months of tensions that have stood in the way of a broader bilateral trade agreement, but US trade representative Katherine Tai also dealt a blow to the hopes of the UK government, which wants to secure a broad free trade agreement (FTA) as a sign of success in its Brexit policy.

Speaking after meeting Trevelyan separately in Baltimore, Maryland, Tai described FTAs as “a very 20th-century” tool and it might not be worth “blood sweat and tears” to agree. “I just want to say we are finding in trade that one size does not fit all,” Tai said, according to Politico.

Experts said the US was unlikely to start trade negotiations until at least November after midterm elections, and it would use talks to forcefully assert foreign policy priorities.

The US-UK steel deal included a provision requiring Chinese-controlled companies in the UK to be audited annually to ensure they were not breaching restrictions on Chinese steel exports. In practice, the main target of the provision will be British Steel, owned by China’s Jingye.

David Henig, the UK director of the European Centre for International Political Economy, a thinktank, said the China provision suggested UK negotiators would face a tricky balancing act if broader talks were opened.

“The UK government is keen to sign up to things, but it could be quite dangerous things they sign up to,” he said. “[The US is] going to drive a very hard bargain on things like China.”

In a joint statement, Raimondo and Tai said the deal would allow the allies to focus on what they described as “China’s unfair trade practices”.

“It points to the direction of travel we’re heading in,” said Sam Lowe, the director of trade at Flint Global, a consultancy. “I suspect we’re going to see more of this type of thing to ensure countries play by the rules – or the rules as the US sees them.”

Nevertheless, the steel deal does remove a recurrent sticking point between the two countries. British steel and aluminium companies that export to the US have faced tariffs of 25% and 10% respectively on their goods since 2018, when they were brought in by the then president Donald Trump. The UK retaliated with equivalent levies on prominent American products such as Levi’s jeans, bourbon whiskey and Harley Davidson motorbikes.

The US section 232 tariffs were introduced under “national security” concerns and were part of Trump’s broader efforts to put pressure on trading partners.

The UK steel industry reacted with alarm when the US agreed a deal with the EU to remove the Trump-era tariffs on European steel at the end of 2021, leaving British businesses at a disadvantage for months.

The pact will also end Britain’s retaliatory tariffs on American goods, including Harley-Davidson motorcycles, bourbon whiskey, Levi Strauss blue jeans, and cigarettes.

Alasdair McDiarmid, operations director for the steelworkers’ union Community, welcomed the agreement, adding: “To protect jobs our steelmakers must compete on a level playing field, and it is vital the UK does not suffer a further competitive disadvantage with EU producers.

“The EU secured their deal with the US back in October, so a UK-US deal is well overdue, and it must be implemented without delay to prevent further damage to our industry.”
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×