London Daily

Focus on the big picture.
Thursday, Mar 12, 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
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
×