As part of today’s estimated $6 billion trade deal with the United Kingdom, the US has agreed to drop existing 25 percent tariffs on steel and aluminum imports that went into effect March 12 as part of a worldwide tariff scheme devised by US President Trump aiming to strengthen the US domestic steel industry and protect US steel companies from ongoing steel global overcapacity and steel dumping issues. According to White House statement, the US will introduce a new quota system for certain steel imports from the UK.
“One of the key reasons that this deal worked with the UK is that the (US) blew up the whole international trade system,” Trump said, referring to universal reciprocal tariffs. “(Previous administrations) have been trying to get this deal done for 25 years with the UK, and it took us 45 days to get it done,” he said. “The UK was very closed to products from the US, and now it’s open.”
"That is a deal that will protect British businesses and save thousands of jobs in Britain," UK Prime Minister Keir Starmer said in a press conference separate from today’s Trump event.
The new deal with the UK also includes actions that would nationalize British Steel, a move that could potentially lead to significant public investment, experts say. The nationalization of British Steel could help secure the company’s future, particularly the Scunthorp Steelworks, which is the last remaining UK steel plant capable of producing virgin steel.
As part of the nationalization effort for British Steel, the UK government would take over the company’s assets, liabilities and overall operations. It would also likely involve a substantial injection of public funds to stabilize the company and ensure its continued operation.
The new trade deal also includes a $10 billion Boeing procurement deal with the UK for airplane parts, while 25% tariffs on UK auto imports will drop to 10 percent for up to 100,000 vehicles.
This weekend, US officials including Treasury Secretary Scott Bessent will meet with their Chinese counterparts to de-escalate tensions over current 145 percent tariffs. Speaking of the tariffs, Trump said "They can't get any higher... I think we’re going to have a very good weekend.”