Talks to finalise US steel tariff exemption ongoing as deadline nears

LONDON: Government talks to finalise the deal to spare the United Kingdom (UK) from United States (US) steel tariffs are ongoing, PA Media/dpa reported.

AI Brief

UK steel faces a possible tariff hike to 50% if no deal is reached, unlike the auto and aerospace sectors.
Trump plans to impose new tariffs and is pressuring trade partners to negotiate, sending out letters detailing rates.
Conflicting signals on implementation dates create confusion as UK and US continue steel trade talks.

The UK prime minister's office said this amid a looming deadline for the levies to start and an industry body calling for a "swift" resolution. President Donald Trump said he plans to start implementing tariffs on the US's trade partners on Wednesday.

The UK has already managed to negotiate a deal with the US, which eliminates the threat of tariffs for British car and aeroplane manufacturers.

But a reprieve for the steel industry is yet to be finalised, leaving open the threat that the current 25 per cent tariff rate could rise to 50 per cent after the deadline.

Trump is reportedly stepping up pressure on countries that could soon be subject to the tariffs, urging them to negotiate trade deals with the US.

But amid signs of confusion within the US administration, Trade Secretary Howard Lutnick has suggested US trade partners will see the levies begin on August 9, after receiving a letter outlining them on July 9.

Trump told his Cabinet that negotiating trade deals was "too time-consuming" so he was sending out letters to countries detailing tariff rates.

In a post on Truth Social on Tuesday night, he said letters to "a minimum of 7 Countries" would be released on Wednesday morning, with more in the afternoon, although he gave no indication which countries would be receiving the letters.

Gareth Stace, director general at industry body UK Steel, said, "A swift and positive resolution is needed to safeguard jobs, unlock growth, and restore confidence in the UK steel sector."

The prime minister's office at 10 Downing Street said on Tuesday that discussions are ongoing between UK and US officials to secure zero per cent tariffs on core steel imports to the US.

A Number 10 spokesman said, "As we've said before, this is something that we continue to discuss with the US, just as we did with aero and auto, and those discussions will continue."

-- BERNAMA