Steel trade unions in the UK are emphasizing the urgent need for a deal to safeguard the sector from President Trump’s tariffs, following the exclusion of the industry from the recent UK-US trade agreement. While the car industry is set to benefit from reduced tariffs and the aerospace sector faces no tariffs after the deal, steel imports still face a 25% tariff. The announcement of the deal did not address the removal of steel tariffs, prompting calls for swift action to secure a deal for the steel industry.

Alasdair McDiarmid of the steel union Community stressed the importance of reaching a deal promptly to eliminate uncertainty and allow normal business operations to resume. The steel industry source highlighted the need for a quick resolution to prevent potential 50% tariffs from taking effect in July. Gareth Stace of UK Steel expressed anticipation for a tariff rate cut similar to other industries and emphasized the necessity of clarifying trade routes and quotas for UK steelmakers.

Efforts are underway to ensure that Tata Steel, the UK’s largest steelmaker, is included in tariff-free access to the US. Concerns have been raised regarding the ownership of British Steel and its alignment with US requirements. Separately, British Steel secured a significant supply contract with Network Rail, although concerns persist about potential reductions in their share of the contract.

The UK-US trade pact, negotiated in May, is eagerly awaited by manufacturers to resume shipments without facing punitive tariffs. The delay in implementing the agreement has led to decreased exports to the US, with luxury carmakers like Jaguar Land Rover and Bentley pausing shipments. Overall, the steel industry and related sectors are looking for swift resolutions and clarity to navigate the evolving trade landscape effectively.