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Still shackled by tariffs: Why the UK missed the steel and aluminium deal deadline with the US

EDITED BY : 4MINS READ

In a blow to Britain’s steel and aluminium exporters, the UK has officially missed the July 9 deadline to strike a deal with the United States over the continuation of punitive tariffs first imposed by the Trump administration in 2018. The breakdown in talks risks prolonging a trade dispute that many hoped would be resolved by now, leaving British metal producers disadvantaged and frustrated.

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Still shackled by tariffs: Why the UK missed the steel and aluminium deal deadline with the USImage for referential purposes only

At the heart of the issue is a failure to agree on mutually acceptable terms for a deal akin to the ones the US struck with the EU, Japan, and other allies. While those nations secured tariff rate quotas (TRQs) that partially restored access to the American market, the UK remains stuck with Section 232 tariffs — 25 per cent on steel and 10 per cent on aluminium. These measures, justified on the grounds of national security during the Trump era, have since become widely recognised as economic weapons aimed at protecting American producers.

For Britain, which exports around GBP 350 million worth of steel to the US annually, the tariffs have been more than a nuisance. They have been a constraint on post-Brexit trade aspirations. Since exiting the EU, the UK has sought to establish itself as a nimble, globally integrated economy. Yet, this long-standing trade irritant continues to symbolise the structural limitations of that goal.

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EDITED BY : 4MINS READ

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