A proposed deal to scrap tariffs on UK steel exports to the United States has been put on hold indefinitely, dealing a blow to hopes of quick relief for Britain’s struggling steel industry.
Tariffs Remain at 25%
Currently, UK steel shipped to the US faces a 25% tariff — less than the 50% duty imposed on many other countries, but still a significant cost for British producers. Steel sold to the US accounts for around 6% of UK export volume and 9% by value.
The UK had hoped that a new agreement could reduce those duties to zero. But industry sources told the BBC those talks have stalled, with no timetable for resolution.
Industry Frustration
Gareth Stace, director of UK Steel, said the sector was “disappointed” by the lack of progress. Speaking to BBC Radio 4’s Today programme, he recalled that in May the industry had been promised a “tantalising glimpse” of a tariff-free quota.
“Despite the efforts of the UK government, it’s not within their gift. It’s within the gift of the US administration,” he said.
One UK steel producer told the BBC they were “furious”, warning that without tariff relief they would struggle to compete with American steelmakers on price.
Political Signals
President Donald Trump, who arrives in the UK for a state visit this week, has suggested there could still be movement. Speaking to reporters on Air Force One, he said: “They’d like to see if they could get a little bit better deal. So, we’ll talk to them.”
Business Secretary Peter Kyle confirmed discussions on tariff relief are under way. Senior government sources maintain there “remains a path to zero”.
Over the weekend, Liam Byrne, the Labour chair of the Commons Business and Trade Committee, stressed the significance of Trump’s visit, saying: “This is no mere pageant. We can’t escape the truth that Britain now trades with its biggest partner on terms that are worse than the past.”
Wider Struggles in Steel
The UK steel industry is under severe pressure. Tata Steel has shut its blast furnaces at Port Talbot while it prepares to build new electric arc furnaces, not due until 2027. Meanwhile, Chinese-owned plants in Scunthorpe are now being run by the government, and Liberty Steel sites in Rotherham and Stocksbridge were taken under state control last month.
At the time the 25% tariff was imposed, executives warned it would be “devastating” for the sector. While some industry figures now take reassurance that Britain is at least in a stronger position than other exporters facing 50% tariffs, others warn the lack of progress risks long-term damage.
A government spokesperson said ministers were “continuing to work closely with the US to deliver certainty for UK industry, protect skilled jobs and support economic growth”.
Opposition Reaction
The political fallout has been swift. Andrew Griffith, the shadow business and trade secretary, criticised Prime Minister Keir Starmer, saying: “The Prime Minister claimed credit for negotiating steel tariffs to zero.”
The setback underscores the difficulties facing the UK in securing post-Brexit trade wins, and the mounting challenges for a domestic steel industry already under intense financial strain.
