UK Gets Steel Tariff Exemption, but Europe Pays Double
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Trump tariffs live updates: Mexico threatens countermeasures if US keeps 50% metal tariffs
Global leaders and businesses react to doubling of US metal tariffs. Some have criticised the latest tariff hike as fuelling more uncertainty in the global economy. Mexico’s President Claudia Sheinbaum vowed to take countermeasures if no deal is met with the US. The UK now has until the 9 July to finalise its trade deal with the U.S.
Image source, Reuters
“If you don’t have steel, you don’t have a country,” US President Donald Trump told a crowd of supporters in Pittsburgh, Pennsylvania, on Friday, when he announced the US would double its steel and aluminium tariffs to 50%.
Those tariffs, which have come into effect today, have prompted a wave of reaction from world leaders and businesses – some of whom have criticised the latest tariff hike as fuelling more uncertainty in the global economy.
Mexico’s President Claudia Sheinbaum vowed to take countermeasures if no deal is met with the US.
Elsewhere, the EU’s trade commissioner said he had a “productive and constructive” discussion with US trade envoy Jamieson Greer.
There was some relief for the UK after it was revealed the country would be exempt from the tariff hike, due to its trade agreement with the US. The UK would instead face a 25% rate.
As our business editor reports, the UK now has until the 9 July to finalise its trade deal with the US. If not, the UK too could face 50% metal tariffs.
Despite the weariness of international allies, US steel manufacturers are strongly backing the White House. “This tariff action will help prevent new surges in imports that would injure American steel producers and their workers,” wrote the American Iron and Steel Institute. , external
We will be pausing our live coverage shortly, but you can stay across this story on BBC News: Trump’s 50% tariffs on metals come into effect
Donald Trump doubles US steel and aluminium tariffs to 50%
Trump’s 50% tariffs on metals come into effect on Wednesday. The move hikes import taxes on the metals for the second time since March. Critics say the protections could wreak havoc on steel producers outside the US. The UK was granted a carve-out from the measures, leaving duties on its steel and aluminium at 25%, a move Trump said reflected its ongoing trade discussions with the U.S. The US is the biggest importer of steel in the world, after the European Union, getting most of the metal from Canada, Brazil, Mexico and South Korea. A 2020 analysis estimated that Trump’s first term created roughly 1,000 jobs in the steel industry, but cost 75,000 other jobs as a result of the new measures, such as a rise in prices for cars and other products. The EU and the US are engaged in intense talks to try to make progress toward an agreement, a spokesperson for economic security and trade for the European Commission told the BBC. “We really hope that the Americans will roll back on this latest tariff threat,” he said.
12 hours ago Share Save Natalie Sherman BBC News Share Save
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US President Donald Trump has signed an order doubling tariffs on steel and aluminium imports from 25% to 50%. The move hikes import taxes on the metals, which are used in everything from cars to canned food, for the second time since March. Trump has said the measures, which came into effect on Wednesday, are intended to secure the future of the American steel industry. However, critics say the protections could wreak havoc on steel producers outside the US, spark retaliation from trade partners, and come at a punishing cost for American users of the metals.
Hours before he hiked the duties, many firms directly affected could hardly believe the plan was moving forward, hoping it would turn out to be temporary or some kind of negotiating ploy. Even as Trump signed the orders, the UK was granted a carve-out from the measures, leaving duties on its steel and aluminium at 25%, a move Trump said reflected its ongoing trade discussions with the US. “Always the question with Mr Trump is, is this a tactic or is this a long-term plan?” said Rick Huether, chief executive of Independent Can Co, a Maryland-based business, which brings in steel from Europe and turns it into decorative cookie tins, popcorn boxes, and other products. Trump’s moves earlier this year had prompted him to put investments on hold and raise prices. He said he feared his customers would turn to alternatives such as plastic or paper boxes due to all of the uncertainty. “There’s a lot of chaos,” he said.
The US is the biggest importer of steel in the world, after the European Union, getting most of the metal from Canada, Brazil, Mexico and South Korea, according to the US government. During his first term, Trump imposed tariffs of 25% on steel and 10% on aluminium, citing a law that gives him authority to protect industries considered vital to national security. But many imports ultimately escaped the duties after the US struck trade deals with allies and granted exemptions to certain imports at the request of firms. Trump ended those carve-outs in March, saying he was unhappy with the way the protections had been weakened. At Friday’s rally at the US Steel factory, he said he wanted to make tariffs so high that US businesses would have no alternative but to buy from American suppliers. “Nobody’s going to get around that,” he said of the 50% rate. “That means that nobody’s going to be able to steal your industry. It’s at 25% – they can get over that fence. At 50%, they can no longer get over the fence.”
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Reaction in the UK and Europe
As of May, imports and the rate of raw steel production in the US had changed little since last year before Trump raised tariffs, according to the American Iron and Steel Institute. But steel imports fell 17% in April, compared to March. And businesses selling the metals into the US said they expected Trump’s latest announcement to lead to an even more dramatic drop.
Trump’s moves in March had already prompted Canada and the European Union to prepare to hit back with tariffs of their own American products. On Tuesday, Olof Gill, spokesperson for economic security and trade for the European Commission told the BBC the two sides were engaged in intense talks to try to make progress toward an agreement. “We’re negotiating hard to try and make good deals,” he said. “We really hope that the Americans will roll back on this latest tariff threat, as they have done on others, but that remains to be seen.”
In the UK, Trump’s announcement put new pressure on the government to pin down the trade deal in the works with the US, which had been expected to provide some protection from the March metals tariffs. Trade Secretary Jonathan Reynolds met with US Trade Representative Jamieson Greer in Paris on Tuesday. His office said it was “pleased” that the trade talks had protected UK steel from the latest duties. “We will continue to work with the US to implement our agreement, which will see the 25% US tariffs on steel removed,” he said. Gareth Stace, director general of UK Steel, which represents steelmakers, told the BBC that his members had already seen orders cancelled and delayed as a result of the 25% tariffs put in place in March. He warned that a 50% tariff would be “catastrophic” for UK exports to the US, about 7% of overall exports. “The introduction of 50% tariffs immediately puts the shutters up,” he said. “Most of our orders, if not all of them, will now be cancelled.”
Economists said the US economy is also facing damage, as prices rise as a result of the new measures. A 2020 analysis estimated that Trump’s first term tariffs created roughly 1,000 jobs in the steel industry, but cost the economy 75,000 jobs in other sectors, such as manufacturing and construction. Erica York, vice president of federal tax policy at the Tax Foundation, said that she expected to see even more extreme job losses this time. “Some of the strongest evidence is against tariffs on intermediate inputs like steel and aluminium, finding they are much more harmful because they increase the cost of production in the United States,” she said. “It’s just very foolish to double down on this type of tariff in particular.”
Trump tariffs live updates: Trump says China’s Xi is ‘extremely hard to make a deal with’
President Trump said it’s “extremely hard” to reach a deal with his Chinese counterpart Xi Jinping. The US-China detente has been looking more fragile amid both trade-related and other tensions. The White House has confirmed that the US had sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July. US trade talks with the EU have come back into focus as an early-July deadline looms for Trump’s 50% tariffs on imports from the bloc.
“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump posted on Truth Social in the early hours of Wednesday.
The US-China detente — reached in mid-May in Geneva, when each country eased sky-high tariffs on the other — has been looking more fragile amid both trade-related and other tensions. Each side has accused the other of violating that truce.
Trump’s words for Xi come as the US is pushing countries to speed up trade talks. The White House has confirmed that the US had sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July.
White House advisers have for weeks promised trade deals in the “not-too-distant future,” with the only announced agreement so far coming with the United Kingdom.
But US tensions with China and the EU — two key trade partners — amped up after Trump promised last weekend to double tariffs on steel and aluminum from 25% to 50%. Those tariffs took effect Wednesday, June 4.
US trade talks with the EU have come back into focus as an early-July deadline looms for Trump’s 50% tariffs on imports from the bloc.
With US and EU negotiators, Jamieson Greer and Maroš Šefčovič, meeting in Paris today, all eyes are on whether a deal will be made.
Meanwhile, Trump’s most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”
Administration officials also hinted that court rulings would not be the final say. Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue.
Here are the latest updates as the policy reverberates around the world.
LIVE
1083 updates
UK temporarily spared from Donald Trump’s 50% steel tariffs
UK temporarily spared from Trump’s 50% steel tariffs from Wednesday. But the levy remains at 25% for the UK. The UK could end up facing the higher rate if its deal signed with the Trump administration last month, which would see steel and aluminium tariffs axed, does not come into force. The US is the biggest importer of steel in the world, after the European Union, getting most of the metal from Canada, Brazil, Mexico and South Korea. America is the destination for about 7% of the UK’s steel exports worth more than £400m, meaning tariffs have a big impact on the industry. But an indirect impact is that steel redirected from the US to the UK and other markets could “displace domestic producers”, an expert says. The White House has said it is trying to encourage businesses and consumers to buy more American-made goods in an attempt to boost manufacturing and jobs. But many economists have warned it could lead to higher prices for consumers of foreign-made products, and a loss of jobs.
2 hours ago Share Save Mitchell Labiak & Tom Espiner Business reporters, BBC News Share Save
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The UK has been temporarily spared from US President Donald Trump’s executive order doubling steel and aluminium tariffs from 25% to 50%. The order raises import taxes for US-based firms buying the metals from other countries from Wednesday – but the levy remains at 25% for the UK. However, the UK could end up facing the higher rate if its deal signed with the Trump administration last month, which would see steel and aluminium tariffs axed, does not come into force. Imports of UK steel into America are currently subject to tariffs, but the UK government said it wanted to implement the agreement to remove them “as soon as possible”.
A spokesperson said the government was “committed to protecting British business and jobs”, but the Conservatives said the order was a “fresh tariff blow” and accused Labour of leaving “businesses in limbo”. Trump said in the order that the UK needed “different treatment” because of the US-UK Economic Prosperity Deal (EPD) signed on 8 May 2025. However, Trump later added that the US might increase the tariff on the UK “on or after July 9 2025” if it “determines that the United Kingdom has not complied with relevant aspects of the EPD”.
How we reached this point
10 February: Trump announces 25% tariffs on all steel and aluminium imports to the US – the new duties kicked in on 12 March
Trump announces 25% tariffs on all steel and aluminium imports to the US – the new duties kicked in on 12 March 2 April: Trump announces most countries – including the UK – will face a 10% “baseline” tariff on all goods sent to the US
Trump announces most countries – including the UK – will face a 10% “baseline” tariff on all goods sent to the US 8 May : UK and US agree to reduce or remove some levies
: UK and US agree to reduce or remove some levies 4 June: US raises import taxes for steel and aluminium to 50% – the levy temporarily remains at 25% for the UK
The UK’s carve-out in the executive order comes after Business Secretary Jonathan Reynolds met with US Trade Representative Jamieson Greer in Paris on Tuesday. Last month, the US and UK agreed a deal to reduce or remove tariffs on some goods, which included cutting tariffs on UK steel and aluminium to zero and reducing import taxes on cars to 10%. The agreement is yet to come into force. The US is the biggest importer of steel in the world, after the European Union, getting most of the metal from Canada, Brazil, Mexico and South Korea, according to the US government. When it comes to the UK, America is the destination for about 7% of the country’s steel exports worth more than £400m, meaning tariffs have a big impact on the industry. The UK is also home to suppliers of specialist steel products, which ship most of their goods to customers across the Atlantic.
Uncertainty and confusion
Gareth Stace, the chief executive of UK Steel, said it had been “a rollercoaster ride of uncertainty in the last months, weeks and days”, but that the industry could “breathe a temporary sight of relief” that the UK faced tariffs of 25%, rather than 50%. He said “what we really want to get to is those tariffs removed” as agreed by the US and UK in May. “We hope that deal can be made soon enough,” he added. If that deal gets over the line, the UK steel industry would benefit from US importers having to pay no tariffs compared with products from the EU and other countries, he said. However, an indirect impact is that steel redirected from the US to the UK and other markets could “displace domestic producers”, he added. Rowan Crozier, chief executive of metal-stamping firm Brandauer in Birmingham, said in the carve-out would mean UK-based firms would not be seeing the same import tariffs as global competitors, but he warned “far reaching” uncertainty was “the more damaging element”. “That’s one thing that the Trump administration continues to do, is to create confusion, with the hope of getting a deal,” he told the BBC’s Today programme. “Essentially, our customers are less confident in forward planning, or ordering what they need”. However, he said that as a specialist manufacturing business, his US customers had little choice but to pay the tariffs at present. President Trump has imposed tariffs on many countries since returning to the White House in an attempt to encourage businesses and consumers to buy more American-made goods. Tariffs are taxes paid by businesses importing goods from foreign countries. Trump hopes his policy will boost US manufacturing and jobs but many economists have warned it could lead to higher prices for consumers.
Alan Auerbach, University of California director of tax policy and public finance, said more US steel production was “not going to happen overnight”. “In the short run, buyers are simply going to have to pay more for the steel that they’re buying from foreign sources,” he said. There may be more US production eventually, but uncertainty over what tariffs will look like in the future “undercuts the aim of getting more US production”, Mr Auerbach added, because firms need that certainty to make investment decisions. Shadow business secretary Andrew Griffith said: “Labour’s botched negotiations have left businesses in limbo and this country simply cannot afford their continuing failure.”
Trump tariffs live updates: Trump says China’s Xi is ‘extremely hard to make a deal with’
President Trump said it’s “extremely hard” to reach a deal with his Chinese counterpart Xi Jinping. The US-China detente has been looking more fragile amid both trade-related and other tensions. The White House has confirmed that the US had sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July. US trade talks with the EU have come back into focus as an early-July deadline looms for Trump’s 50% tariffs on imports from the bloc.
“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump posted on Truth Social in the early hours of Wednesday.
The US-China detente — reached in mid-May in Geneva, when each country eased sky-high tariffs on the other — has been looking more fragile amid both trade-related and other tensions. Each side has accused the other of violating that truce.
Trump’s words for Xi come as the US is pushing countries to speed up trade talks. The White House has confirmed that the US had sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July.
White House advisers have for weeks promised trade deals in the “not-too-distant future,” with the only announced agreement so far coming with the United Kingdom.
But US tensions with China and the EU — two key trade partners — amped up after Trump promised last weekend to double tariffs on steel and aluminum from 25% to 50%. Those tariffs took effect Wednesday, June 4.
US trade talks with the EU have come back into focus as an early-July deadline looms for Trump’s 50% tariffs on imports from the bloc.
With US and EU negotiators, Jamieson Greer and Maroš Šefčovič, meeting in Paris today, all eyes are on whether a deal will be made.
Meanwhile, Trump’s most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”
Administration officials also hinted that court rulings would not be the final say. Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue.
Here are the latest updates as the policy reverberates around the world.
LIVE
1083 updates
Source: https://www.nytimes.com/2025/06/04/business/uk-trump-tariffs-steel.html