A deal to cut U.S. tariffs on British steel and aluminum to zero has been postponed shortly before U.S. President Donald Trump’s visit to the United Kingdom, government sources confirmed.
Officials had been preparing to finalise an agreement this week that would have lowered tariffs from 25% to 0% on a quota of UK steel exports. However, the plan was placed on hold just hours before Trump’s arrival, creating uncertainty for steel producers who had been anticipating relief.
According to one government source, the shelved deal would have secured tariff-free access for a limited volume of British steel, with scope for expansion once U.S. concerns about the origin of UK raw material imports were resolved. Instead, ministers are now pursuing a guarantee that U.S. tariffs on British steel will not rise above 25%. Other countries continue to face tariffs of up to 50% on their steel exports.
Industry figures expressed disappointment at the delay, noting the prolonged uncertainty. “It’s disappointing – perhaps not 100% surprising,” one executive said, adding that some products may remain difficult to sell in the U.S. market. Others, however, pointed out that maintaining a lower tariff than competitors such as the EU still gives UK producers a relative advantage.
Gareth Stace, Director General of UK Steel, said it would be “disappointing if we do not have the tariff-free quota level” but acknowledged that a capped 25% tariff “offers a degree of certainty and potentially a competitive advantage so long as other countries remain at 50%.”
The UK government emphasised the continuing partnership with the U.S., noting that Britain remains the only country with a 25% tariff ceiling on steel exports. “We are continuing to work closely with the U.S. to deliver certainty for UK industry, protect skilled jobs and support economic growth,” a government spokesperson said.
At the same time, the UK is moving ahead with new economic partnerships. This week, ministers are expected to announce a technology pact with the U.S. involving £31bn in investment, including a domestic version of the Stargate AI project. Backed by companies such as OpenAI, Nvidia and Nscale, the initiative includes a new data centre in Wallsend and a wider “AI growth zone” in northeast England that could create more than 5,000 jobs.
Other elements of the tech pact include Microsoft’s backing of the UK’s largest supercomputer in Essex, as well as commitments from CoreWeave and Salesforce. A joint taskforce on quantum computing will also be established.
The government described the agreement as a “generational step change” in UK-U.S. relations, saying it will drive investment, create skilled employment, and strengthen the country’s role in the global technology sector.
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