The UK steel industry is calling for clarity on when a newly announced U.S. agreement to remove tariffs on British steel will actually take effect.
On Thursday, the UK and U.S. reached a landmark deal to reduce tariffs on British steel exports from 25% to 0%. However, industry leaders remain uncertain about when the change will be implemented, as key details are still being finalized.
According to documents released late Thursday, both sides must still agree on security protocols and export quotas, leaving industry representatives unsure about the practical timeline for the removal of tariffs.
Chrysa Glystra, Director of Trade and Economic Policy at UK Steel, said, "This isn’t just a formality. There are still many unresolved issues." She added that companies are unclear on what supply chain requirements must be met to qualify for tariff-free access.
“We don’t know when the deal will take effect or what the specific timeline looks like,” Glystra said.
In 2024, the UK steel industry contributed £1.7 billion to the economy, representing 0.1% of GDP. The sector has faced ongoing uncertainty, including a recent government intervention to take control of the country's last virgin steel producer from its Chinese owners.
Details of the U.S. agreement show that tariff-free access hinges on the UK’s commitment to address U.S. concerns over the security of supply chains for steel and aluminium exports, as well as the ownership structure of UK production facilities.
The agreement notes that once the UK meets these conditions, the U.S. will “quickly construct a quota” system for tariff-free trade.
The Office of the U.S. Trade Representative also mentioned plans to negotiate a separate steel arrangement involving the UK, U.S., and Canada.
The UK trade ministry has declined to provide a timeline for when the deal will be formalized.
Despite the uncertainty, Glystra said that discussions between UK Steel and the government have been constructive. “It’s encouraging that we now have a better foundation than before,” she said. “But it would be even better if we had a firm date and zero tariffs starting today.” Photo by Alan Murray-Rust, Wikimedia commons.