The United Kingdom has been temporarily spared from a steep hike in U.S. steel and aluminium tariffs imposed by President Donald Trump, as a new executive order doubles import taxes on most global suppliers from 25% to 50%.

For now, UK steel and aluminium imports into the U.S. will continue to face the existing 25% tariff — but that reprieve could be short-lived. The exemption hinges on the implementation of a recent UK-US trade deal aimed at scrapping the tariffs altogether.

While the agreement, signed last month, would remove levies on UK metals and reduce tariffs on other goods like cars, it has yet to come into force. If progress stalls, the UK could still be hit with the higher 50% tariff as early as July 9, 2025.

Why Was the UK Spared — For Now?

In the executive order, Trump acknowledged that the UK warranted “different treatment” due to the Economic Prosperity Deal (EPD) signed on May 8, 2025. But he also warned that if the UK fails to meet certain terms of the deal, the full tariff hike may still be imposed.

The UK’s exemption follows a meeting in Paris between Business Secretary Jonathan Reynolds and U.S. Trade Representative Jamieson Greer, where both sides reaffirmed their commitment to finalizing the EPD.

What’s in the UK-US Tariff Deal?

The proposed deal includes:

• Eliminating U.S. tariffs on UK steel and aluminium
• Reducing U.S. import taxes on UK cars to 10%
• Increased cooperation on standards and industrial supply chains

However, none of these provisions are in effect yet — and businesses on both sides of the Atlantic are increasingly anxious about what happens next.

Steel Industry Reacts: Relief and Worry

Gareth Stace, Director General of UK Steel, welcomed the temporary exemption but said the lack of clarity was damaging confidence:

“Uncertainty remains over final tariff rates. U.S. customers are now wary of placing orders with UK suppliers.”

Around 7% of UK steel exports — worth over £400 million annually — are destined for the U.S., making it a crucial market. The UK is also home to several niche steel manufacturers whose primary customers are American.

Rowan Crozier, CEO of Birmingham-based metal firm Brandauer, said the carve-out offers “short-term relief” but added that “confusion from the Trump administration” is dampening customer confidence.

“Our U.S. customers don’t know what to expect next,” he told the BBC. “Uncertainty is more damaging than tariffs.”

The Bigger Picture: Trump’s Trade Agenda

Since returning to the White House, President Trump has ramped up protectionist policies, aiming to push American firms and consumers to buy domestically produced goods. Tariffs, which are taxes on imported products, are a key tool in that strategy.

Trump argues this will bolster U.S. manufacturing and jobs. But many economists warn it could backfire, raising prices for U.S. consumers while offering no quick boost to domestic production.

Alan Auerbach, Director of Tax Policy at the University of California, said:

“U.S. steel production won’t ramp up overnight. In the short term, buyers will just pay more — and long-term uncertainty could stall new investments.”

Political Fallout in the UK

The tariff situation is already sparking political debate in Westminster. Shadow Business Secretary Andrew Griffith blamed Labour for the unresolved deal:

“Labour’s botched negotiations have left businesses in limbo. This country cannot afford their continued failure.”

A UK government spokesperson, however, said the priority remains to finalize the agreement “as soon as possible” to “protect British business and jobs.”