UK Steel Tariff Talks with US Delayed Amid Push for Permanent 25% Cap

UK Steel Tariffs Negotiations Stalled Ahead of Trump Visit

The UK steel tariff negotiations with the US have been paused just days before a potential deal was to be finalized. According to The Guardian, the UK government halted talks ahead of former President Donald Trump’s state visit. Officials had planned to secure zero tariffs on British steel exports within a limited quota, but the strategy shifted last-minute.

Instead of a limited-duty quota, the UK now seeks a permanent guarantee that US tariffs on British steel will not exceed 25%. This would offer greater predictability, especially as other countries still face 50% tariffs. A government source indicated that the previous deal would have expanded quota limits as US concerns over raw material sourcing were addressed.

Meanwhile, Prime Minister Keir Starmer announced a £31 billion UK-US tech agreement and a new artificial intelligence hub in northeast England. These initiatives reflect a broader strategy to secure economic wins amid stalled trade talks in traditional sectors like steel and aluminum.

Industry Response and the EU Steel Trade Reopening

British steelmakers have reacted with mixed emotions. While disappointed by the missed opportunity for duty-free access, they welcome the stability a 25% tariff ceiling may provide. UK Steel CEO Gareth Stace noted that a firm 25% rate offers a competitive edge over countries facing 50% tariffs.

A key point of contention remains the US requirement that steel must be “melted and poured” in the UK to qualify for exemptions. This condition excludes producers like Tata Steel UK, which shut its last blast furnace in 2024, making compliance impossible.

On a more positive note, from August 1, 2025, British steelmakers will regain duty-free access to the EU market for select products. The European Commission reinstated the UK’s country-specific quota (CSQ) for category 17 steel, including angles and profiles. This will allow UK producers to export 27,000 tons per quarter without additional duties, marking a key boost amid the stalled US negotiations.

SuperMetalPrice Commentary:

The UK’s pivot from a short-term steel quota deal to a long-term tariff cap reflects a strategic recalibration. Given the US’s firm stance on origin requirements, a 25% ceiling may serve as a realistic and stable outcome for now. However, the loss of zero-tariff access—especially for a sector already hit by blast furnace closures—limits UK competitiveness in high-margin export markets. As the EU market reopens, British producers may shift their focus back to Europe unless US terms become more flexible. In this evolving trade landscape, certainty—even at 25%—might prove more valuable than elusive zero-duty arrangements.