LONDON – British Prime Minister Keir Starmer expressed optimism on Wednesday that tariffs on British steel exports to the United States will soon be eliminated, averting a potential increase to 50% set for July.
Speaking to lawmakers, Starmer said he expected the recently negotiated trade agreement with the U.S. to be fully implemented within weeks. The deal, struck last month with President Donald Trump, aims to reduce tariffs on steel, aluminum, and automobiles, in exchange for lower UK tariffs on American beef and ethanol. However, the agreement has not yet taken effect.
On Tuesday, Britain narrowly avoided the immediate impact of a new U.S. proclamation that could have doubled the current 25% tariff on steel. Still, the document warned that if the agreement isn’t enforced by July 9, the higher rate could be triggered.
Starmer downplayed concerns that the U.S. was shifting the terms of the deal, stating, “We have a deal, and we’re implementing it… I’m very confident we will get those tariffs down.”
Trade Minister Jonathan Reynolds met with U.S. Trade Representative Jamieson Greer just before Trump’s announcement, reaffirming both nations’ commitment to fast-tracking the tariff reductions.
UK Steel welcomed the government’s intervention but cautioned that lingering uncertainty may discourage American buyers from sourcing British steel. “The May agreement needs to become operational urgently,” said Gareth Stace, Director-General of UK Steel.