UK Steel and Aluminum to Remain at 25% US Tariff for Now

On June 4 (local time), the United States raised tariffs on imported steel and aluminum products from 25% to 50%. However, British products will temporarily remain subject to the 25% tariff rate.

According to the BBC, the United Kingdom was excluded from the 50% tariff increase under the "UK-US Economic Prosperity Agreement" (EPD), which the two countries agreed to on May 8 to reduce certain tariffs.

This agreement mainly stipulates that the United States will exempt a certain volume of British steel and aluminum from tariffs and lower tariffs on automobile quotas to 10%. However, the agreement has not yet taken effect.

The exclusion of the United Kingdom from the 50% tariff increase is a temporary measure lasting for about one month. British media pointed out that the terms of the bilateral trade agreement must be finalized by July 9.

The executive order signed by U.S. President Donald Trump on June 3 states that, regarding the United Kingdom, "After July 9, the (Commerce) Secretary may adjust the applicable tariff rates and establish import quotas on steel and aluminum that are consistent with the EPD." It goes on to say, "If the Secretary determines that the United Kingdom has not complied with relevant aspects of the EPD, the applicable tariff rate may be increased to 50%."

Gareth Stace, Secretary General of UK Steel, said, "Maintaining the 25% tariff benefits shipments that were at risk of facing higher tariffs while in transit." However, he added, "There is still uncertainty regarding the timing and the final tariff rate. Both countries must urgently implement the May agreement and eliminate tariffs."