Wed, 04 Jun 2025

Wed, 04 Jun 2025 Simon Jack: Tariff relief for UK but new clock ticking on US deal

If the UK's deal with the US is not finalised by 9 July, the UK's tariff on steel will go back up to 50%.

* The UK has been exempt from US tariffs on imported steel, which were set to double to 50% in a new executive order by President Donald Trump.
* The exemption was unexpected and came as a relief to UK trade officials who had feared they would be included with other countries facing the increased tariffs.
* However, there is now uncertainty about whether the tariff will remain at zero or increase to 50% if the UK-US deal on reducing steel tariffs to zero is not finalized by July 9.
* Businesses are experiencing a "corrosive effect" due to this uncertainty and some are concerned that international steel may be diverted to the UK, potentially creating a glut in the market.
* The UK's agreement with the US has already caused problems for the UK ethanol market, which could lead to trade tensions between the two countries if the UK tries to protect its industries.
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