The Labour Government negotiations to secure a deal protecting UK steel from US tariffs are continuing as the July 9 deadline passes. The steel industry faces the threat of tariffs potentially rising from the current 25 per cent rate to 50 per cent after the deadline.
President Donald Trump has said he plans to start implementing tariffs on the US's trade partners on July 9.
Downing Street confirmed that discussions between UK and US officials to secure zero per cent tariffs on core steel imports to the US remain ongoing.
The talks continue despite the deadline passing, leaving British steel manufacturers in uncertainty about their future trading position with America.
Labour are still in negotiations with the Trump administration over tariffs on steel and aluminium
GETTY
Britain has already managed to negotiate a deal with the US which eliminates the threat of tariffs for British car and aeroplane manufacturers. However, a reprieve for the steel industry is yet to be finalised.
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."
The spokesman added that the Government wants to see the deal in force "as soon as possible" and remains "relentlessly focused on making sure British businesses can feel the benefits of the deal as soon as possible".
Signs of confusion have emerged within the US administration regarding the implementation timeline for the tariffs.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Trump's plan of new tariffs have sent shockwaves through the stock marketsGETTY Trade secretary Howard Lutnick has suggested America's 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 seven Countries" would be released on Wednesday morning with more in the afternoon, although he gave no indication of which countries would be receiving the letters.
The US President is reportedly stepping up pressure on countries who could soon be subject to the tariffs, urging them to negotiate trade deals with the US.
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."
When asked if the Government understands the frustration of British steel workers, a Downing Street spokesman said they want to see the deal in force "as soon as possible".
LATEST DEVELOPMENTS:
Prime Minister Keir Starmer and President Donald Trump appear to have an amicable relationship
PAThe spokesman emphasised that the Government "obviously want to see this deal in force as soon as possible" and that "that remains our priority".
Danni Hewson, head of financial analysis at AJ Bell, added: "Deals or no deals? Donald Trump’s tariff deadline might have been pushed back once again but the continued uncertainty isn’t doing investors any favours."
"Even if a full-blown trade war can be skirted, the potential impact on the US economy and its consumers won’t be fully clear for months or even years to come. Looking at the CME’s FedWatch tool, expectation that rate setters might be able to make a move at the next meeting has pretty much petered out.
"It’s nigh on impossible to guess how inflation might be impacted by increased taxes on imports without a clear idea of what those tariff numbers will be. Even the UK’s agreement still has I’s to dot and T’s to cross, with negotiations on steel and aluminium expected to continue way beyond tomorrow."
Most Read
