Sir Keir Starmer stressed on Wednesday that Britain was the “only country in the world” not being hit by Donald Trump’s 50% tariffs on steel.
At Prime Minister’s Questions, he rebuffed criticism from Tory leader Kemi Badenoch and Liberal Democrat leader Sir Ed Davey over his approach to dealing with the Trump administration.
“The United Kingdom is the only country in the world which won’t be subject to the additional tariffs announced today,” the PM said.
“We are working with the US at this moment to swiftly implement the agreement that we have reached which will see the 25% tariffs removed.”
But Ms Badenoch highlighted that there was no guarantee that the UK would escape the 50% levy.
Sir Ed claimed any deal signed by Trump was already “halfway through the Oval Office shredder”.
Trump’s decision, though, to spare Britain a doubling of his 25% steel and aluminium import tariffs - at least for now - has been welcomed by industry, although “uncertainty remains” over the final tax rate.
The US President has decided to “provide different treatment” to the UK after a deal that was struck between Washington and London last month, as he doubled tariffs on imports from elsewhere to 50%.
Levies will remain at 25% for imports of steel from the UK into America, however Britain could still be subject to the higher 50% rate from July, or the quotas in the agreement could come into force, effectively eradicating the tax.
The 50% tariff rate for imports of steel and aluminium from other nations came into force at 12.01am Washington DC time on Wednesday, shortly after 5am in the UK.
The Government said on Tuesday night they were “pleased” that the industry “will not be subject to these additional tariffs”.
Gareth Stace, the director general of UK Steel, said that Mr Trump’s decision is a “welcome pause”.
He added: “Continued 25% tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike.
“However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders.
“The US and UK must urgently turn the May deal into reality to remove the tariffs completely.”
Prime Minister Sir Keir Starmer’s trade deal with the US, struck last month, included relief on the steel and aluminium tariffs, but it has not yet come into force.
Officials have been working to try and finalise the details of the agreement.
According to the text of the order, published by a White House X account on Tuesday, Mr Trump has “further determined that it is necessary and appropriate to allow for the implementation of the U.S.-UK Economic Prosperity Deal of May 8, 2025 (EPD), and to accordingly provide different treatment, as described below, for imports of steel and aluminium articles, and their derivatives, from the United Kingdom”.
🚨 @POTUS just signed the order raising tariffs on steel and aluminum imports to 50%.
— Rapid Response 47 (@RapidResponse47) June 3, 2025
Here is the text of the order:
1. On January 11, 2018, the Secretary of Commerce (Secretary) transmitted to me a report on the Secretary's investigation into the effect of imports of steel… https://t.co/4uwBVmd4Zj
The order later says that rates will for now stay at 25% and adds: “On or after July 9, 2025, the Secretary may adjust the applicable rates of duty and construct import quotas for steel and aluminium consistent with the terms of the EPD, or he may increase the applicable rates of duty to 50 percent if he determines that the United Kingdom has not complied with relevant aspects of the EPD”.
The UK Government has pledged to keep working with the US to get the agreement up and running, and the 25% tariff rate “removed”.
