Great news for the British steel industry as US president Donald Trump has announced that tariffs on steel, which were running at 25%, have been slashed to nothing, zero, zilch, according to news reports.
The rate on British car exports has been cut from 27.5% to 10% applying to the first 100,000 vehicles exported annually from the UK to the USA, and, like steel, aluminium no longer has tariffs attached to exports from the UK.
British Prime Minister Sir Keir Starmer is over the moon, describing the deal as 'fantastic' and 'historic' and is, in return, removing the tariff on ethanol for US goods and has agreed 'reciprocal market access on beef'.
But steel, of course, is the big news as the UK steel industry will no longer face punitive 25% US tariffs, which previously applied to steel imports from the UK. The new agreement reached between the US and UK reduces tariffs on steel from the UK to zero.
The unions are beside themselves with joy too at the news of Sir Keir's historic win for the steel industry. Alastair McDiarmid, Community's assistant general secretary, commented: "The UK Government deserves enormous credit for negotiating this deal to reduce US tariffs which would have had a hugely damaging impact on our steel sector. This new agreement will protect jobs here in the UK, and provides much-needed certainty. Following on from the decisive action taken at British Steel last month, today's news again demonstrates the Labour government's firm commitment to delivering for our steel industry. We will continue to work with the Government to delivery for our members and secure a vibrant UK steel industry for the future."
According to a BBC report, while President Trump has described the momentus announcement as a trade deal, the fact is that only Congress has the authority to strike a free-trade agreement of the sort India and the UK finalised earlier in the week.
"What was announced today is only the bare bones of a narrow agreement," the BBC claimed, adding that there will be 'months of negotiations and legal paperwork to follow'.
While the UK exports a 'relatively small amount of steel and aluminium to the US (roughly £700m in total) the tariffs, claims the BBC, cover products made with steel and aluminium, such as furniture, machinery and gym equipment, which are worth around £2.2 billion (5% of UK exports to the US last year).
What is unclear, however, is whether zero tariffs applies to steel derivative products and whether 'only steel melted and poured in the UK will benefit'.