In the ongoing trade negotiations between the UK and the US, Donald Trump is leveraging tariffs on steel imports to pressure the UK into providing assurances regarding the Indian-owned steel plant in Port Talbot, Wales. While a recent trade deal between the two countries saw reductions in tariffs for car exports and the aerospace sector, tariffs on UK steel imports remain unresolved.

Despite the progress made in reducing tariffs on British cars to 10%, negotiations are still underway to address the steel and aluminum industry concerns. The UK government aims to achieve zero tariffs on core steel products as outlined in the initial agreement. Keir Starmer’s diplomatic approach has been praised, with the US seeking further guarantees on British steel exports due to Tata Steel’s operations in Port Talbot.

To address these concerns, Starmer is sending a delegation to Washington led by business adviser Varun Chandra, with hopes of finalizing a deal soon. The UK government emphasizes the importance of securing a steel deal promptly to provide certainty for steel producers and maintain business operations.

The UK’s exemption from the global 50% steel and aluminum tariffs underscores the significance of resolving the remaining trade issues with the US. With ongoing negotiations and efforts to address US demands, both countries are working towards removing the 25% tariffs on steel and aluminum imports, benefiting the UK steel industry and fostering economic stability.