Trump’s tariff twist for British steel

UK industry was given a boost on the 3rd of June as it was exempted from Trump’s steel and aluminium tariffs, which have been doubled to 50%. The pressure now sits with Keir Starmer to get the deal into place as soon as possible.

According to The Financial Times, Trump announced the new tariffs with an executive order explaining how the UK would escape the 50% tariffs as the US and UK set themselves up for an economic partnership.

Trump stated that this great escape for British industry has come “to allow for the implementation of the US-UK Economic Prosperity Deal”. The issue remains that a 25% tariff will remain on the UK until the prospective deal is signed and implemented.

In order for the UK to receive the zero tariff quota, it must exempt China from its supply chains to meet the US security requirements.

This demand by the USA and Trump has been characteristic of the relations between the president and Starmer’s UK.

Since the two originally agreed on the deal on May 8th, negotiations over the actual implementation have increasingly dragged on, and Trump has taken on an erratic approach in his treatment of the UK.

Trump added in his executive order that he reserves the right to increase steel and aluminium tariffs should he feel that the “United Kingdom has not complied with relevant aspects” of the trade deal.

This deal, which has been agreed, will raise sceptical eyes among business owners and economists as it holds significant instability within it. Whilst British officials have been working hard to get the deal put into force by Trump, there appears to be little clarity.

To its key integrity, it lacks legal binding. Both the UK and the US have announced that this trade pact does not constitute a legally binding agreement.

Without a legally binding agreement or guarantee of when the new tariffs will be implemented, the deal appears to many experts to be of little success in its current state.

The Financial Times/Maghrebi.org