US President Donald Trump's executive order that doubled steel and aluminum tariffs from 25% to 50% has temporarily spared the UK.
The tariff stays at 25% for the UK, but starting Wednesday, the decree increases import duties on US-based companies purchasing the metals from other nations.
However, if the agreement reached with the Trump administration last month to eliminate steel and aluminum tariffs does not take effect, the UK may wind up paying the higher rate.
The UK government stated that it wished to carry out the deal to eliminate the tariffs "as quickly as practicable" on UK steel imports into the United States.
The Conservatives called the order a "new tariff blow" and charged Labour of leaving "companies in doubt," while a spokeswoman stated the government was "dedicated to defending British enterprise and employment."
The UK needs "distinct treatment" due to the US-UK Economic Prosperity Deal (EPD), which was signed on May 8, 2025, according to Trump's decree.
Trump subsequently stated that if the US "determines that the United Kingdom has not complied with pertinent provisions of the EPD," it may raise the tariff on the country "on or after July 9 2025."
The executive order's UK carve-out follows Tuesday's Paris meeting between US Trade Representative Jamieson Greer and Business Secretary Jonathan Reynolds.
The US and the UK reached an agreement last month to lower or eliminate tariffs on a number of commodities, including lowering import duties on automobiles to 10% and eliminating tariffs on UK steel and aluminum. The agreement has not yet been operative.
According to the US government, the US imports more steel than any other country in the world, second only to the European Union, and it primarily imports from Canada, Brazil, Mexico, and South Korea.
About 7% of the UK's steel exports, valued at over £400 million, go to the United States, therefore tariffs have a significant effect on the sector.
Specialty steel product suppliers are based in the UK and export the majority of their products to clients on the other side of the Atlantic.
Confusion and uncertainty
UK Steel CEO Gareth Stace stated that although the past several months, weeks, and days have been "a rollercoaster ride of uncertainty," the sector can "breathe a temporary sight of relief" that the UK will only be subject to 25% tariffs instead of 50%.
As agreed upon by the United States and the United Kingdom in May, he stated that "what we really want to get to is those tariffs removed"
He went on to say, "We hope that deal can be made soon enough,"
In the carve-out, UK-based companies would not be subject to the same import duties as their international counterparts, but Rowan Crozier, CEO of Birmingham-based metal-stamping company Brandauer, cautioned that "far reaching" uncertainty was "the most harmful factor."
He said on the BBC's Today show, "That is one thing that the Trump administration continues to do, is to create confusion, with the intention of achieving a deal." "In essence, our clients lack confidence when it comes to ordering what they need or making plans in advance."
As a specialized manufacturing company, he claimed that his US clients were currently forced to pay the tariffs.
Since taking office again, President Trump has levied tariffs on other nations in an effort to persuade consumers and companies to purchase more products made in the United States.
Businesses that import goods from other nations must pay tariffs, which are levies.
Although several experts have cautioned that Trump's approach may result in higher pricing for consumers, he still expects it would increase US manufacturing and jobs.
