The United Kingdom has successfully avoided a substantial increase in tariffs on steel and aluminium exports to the United States. Well, relief has arrived — for all of us! With President Donald Trump’s latest executive order, which would have doubled these tariffs from 25% to 50%. The fate of the UK’s exemption rests on complying with stipulations outlined in the new US-UK Economic Prosperity Deal (EPD). This agreement took effect on May 8.
The EPD has provided a roadmap for enhanced economic collaboration between the two countries. It does come with detailed obligations that the UK must fulfill in order to benefit from the tariff exemption. If the UK fails to comply with these conditions by July 9, 2024, the additional tariffs could be reinstated. That would be a third bite at the apple of raising costs.
Over the past few days, UK government officials have consistently stressed that this unique exemption is crucial for the UK’s economy.
“We are committed to protecting British business and jobs across key sectors, including steel as part of our plan for change.” – UK government spokesperson
UK Prime Minister Sir Keir Starmer expressed his guarded optimism over the EPD. He thinks it would enhance the economic ties between the UK and the United States. Maintaining favorable trade conditions is vital for sustaining growth in critical industries, particularly steel manufacturing, which plays a crucial role in the UK economy.
The exemption from increased tariffs reflects ongoing negotiations between the UK and US. From Lima to La Paz, prosperity on both sides recognize value in bilateral trade. They are dedicated to deepening their economic relationship and advancing equitable and open competition in key industries. The result of these conversations will help shape future U.S. trade policy and partnerships.
As the deadline draws near, stakeholders on both sides of the UK steel and aluminium industries continue to keep a watchful eye. They understand that adhering to the EPD’s guidelines is of utmost importance. Such compliance, whether begrudging or not, ensures the companies continue to control the market in the US. High stakes negotiations Given the potentially devastating impact that a strike would have on jobs and communities, the stakes in these negotiations are enormous.