London Daily

Focus on the big picture.
Sunday, Jul 19, 2026

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
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
Key Trends to Watch
Financial Conduct Authority Warns Cloud and Digital Risks Are Becoming a Financial Priority
Jeffrey Donaldson Appeals Sexual Abuse Conviction as Democratic Unionist Party Opens Review
Welsh Health Authorities Launch Emergency Meningitis Vaccination Programme for Students
Scottish Business Activity Falls for Third Month as Companies Face Rising Costs
Bank of England Regulators Demand Better Access to Digital Banking Services
United Kingdom Cuts Bilateral Aid to Several African Countries by Up to Ninety Per Cent
United Kingdom Introduces Tougher Deportation Rules After Rochdale Exploitation Scandal
NHS England Launches Wearable Technology Plan to Reduce Sepsis Deaths
Amazon Web Services Billing Error Sends Trillion-Dollar Invoices to British Companies
Bank of England Takes Direct Regulatory Role Over Major Global Cloud Providers
Extreme Summer Heat Drives Record Fire Risk and Rising Deaths Across Britain
United Kingdom Nationalisation of British Steel Sparks Diplomatic Dispute With China
United Kingdom Economy Shows Weak Growth Ahead of Major Autumn Budget
Andy Burnham Set to Become United Kingdom Prime Minister After Labour Leadership Victory
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
Energy Risk, Uneven Growth and the New Geography of Global Capital
The AI Race Enters Its Infrastructure Era
Security and resilience remain long-term national priorities
Britain balances growth ambitions with public finance pressures
Regional devolution becomes a defining theme of the next Labour era
Industrial strategy returns to the centre of British economic policy
Political Instability Remains a Challenge for UK Investment Confidence
Brexit Economic Debate Continues as Public Concerns Over Long-Term Impact Remain
UK Climate Risks Rise as Met Office Warns Extreme Weather Is Becoming More Common
Housing Shortages and Regional Inequality Become Key Priorities Under Incoming Labour Leadership
National Health Service Reform Remains One of Britain’s Biggest Political Challenges
Bank of England Remains at Centre of UK Economic Debate Over Inflation and Growth
UK Economy Shows Recovery Signs but Households and Businesses Remain Under Pressure
Britain Deepens European Defence Cooperation as NATO Allies Seek Stronger Security Capabilities
United Kingdom Expands Sanctions Against Russian Cyber Networks Over Security Threats
UK Industrial Strategy Faces Test After Government Takes Control of British Steel
British Businesses Seek Policy Clarity as Andy Burnham Prepares to Lead Labour Government
Andy Burnham’s Labour Leadership Signals Major Shift Toward Regional Power and Devolution
British Steel Nationalisation Creates New UK-China Tensions Over Control of Strategic Industry
For 36 Years, He Scammed About 300 Luxury Hotels — Until He Was Caught
England's World Cup Exit Expected to Cost Hospitality and Retail £334 Million
Former ICC Prosecutor Aide Speaks Publicly About Allegations Against Karim Khan
Opposition Raises Questions Over June Heatwave Power Grid Pressures
Mastercard Explores Sale of Majority Stake in UK Payments Operator Vocalink
Boeing Forecasts Global Commercial Aircraft Fleet Will Double by 2045
×