The UK economy has been dealt another blow as it is understood the previously proposed US tariffs on the steel and aluminium sectors will remain in effect for now.
Last month, Prime Minister Keir Starmer and President Donald Trump announced a trade deal in a joint virtual press conference, which saw the 25 per cent import taxes reduced to zero for British businesses.
However, Trump confirmed plans to raise the sweeping tariffs on global steel and aluminium to 50 per cent in a social media post last Friday (May 30).
The White House has stated US tariffs on UK steel and aluminium will remain at 25 per cent for the foreseeable future despite the previous trade deal announcement, Bloomberg reports.
Trump tariffs on steel and aluminum will be given the green light despite the UK-US trade deal
GETTY / PA
The White House released a statement confirming that tariffs will be levied on UK businesses, as well as the rest of the world.
The Trump administration stated: "Effective at 1201am tonight, steel/aluminum Section 232 tariffs go up to 50 per cent for everyone except UK.
"Based on terms of their trade agreement, we will have possible alternate agreement for quotas/changes after July 9, so they stay at 25 per cent for both until then."
This comes after Trade Secretary Jonathan Reynolds's met with representatives of the Trump administration in Paris ahead of this year's OECD meeting.
Donald Trump has made tariffs the focus of his economic agenda REUTERSUpon signing last month's trade deal, the UK Government stated: "The UK steel industry will no longer face tariffs thanks to today’s deal. The Prime Minister negotiated the 25 per cent tariff down to zero."
The extra tax on the steel industry is expected to raise the cost of metal used to make housing, cars and other goods.
This evening, a UK Government spokesperson said: "The UK was the first country to secure a trade deal with the US earlier this month and we remain committed to protecting British business and jobs across key sectors, including steel as part of our Plan for Change.
"We’re pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs.
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Keir Starmer has been dealt a blow following his UK-US trade deal
GETTY"We will continue to work with the US to implement our agreement, which will see the 25 per cent US tariffs on steel removed."
Since Trump's inauguration, the price of steel products has jumped around 16 per cent, based on the US Government's producer price index.
As of March 2025, the cost of steel was $984 per metric ton in the United States, significantly higher than the prices in Europe ($690) or China ($392), according to the US Commerce Department.
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