According to a report in UK broadcaster BBC News, the US has agreed to ease Trump-era tariffs on UK steel and aluminium shipments, resolving an issue that had strained relations between the allies.

The move follows earlier deals with the European Union and Japan over the controversial taxes, which were imposed by former President Donald Trump in 2018 in the name of national security.

In exchange, the UK will suspend extra taxes it had put on US products such as bourbon and Levi's jeans.

Under the agreement, the US will replace the 25% tariffs on steel with a quota system.

The policy will let UK metal imports into the country duty-free up to a certain level - the quota - before taxes kick in again. The deal will go into effect 1 June.

International Trade Secretary Anne-Marie Trevelyan said the deal had removed a 'very frustrating irritant', calling the agreement 'good news for the steel and aluminium sectors, which support the jobs of over 80,000 people across the UK'.

"It means our manufacturers can now enjoy a high level of tariff-free access to the US market once again."

International Trade Secretary Anne-Marie Trevelyan

"It means our manufacturers can now enjoy a high level of tariff-free access to the US market once again," she said. "Hopefully we can now move forward and focus on deepening our thriving trading relationship with the US."

“This deal represents a hugely positive outcome and is warmly welcomed by the UK steel sector. We must congratulate Anne-Marie Trevelyan on her efforts and success in swiftly agreeing a deal with the US that will greatly benefit the sector.''

UK Steel Director General Gareth Stace

Commenting on the announcement, UK Steel Director General Gareth Stace said: “This deal represents a hugely positive outcome and is warmly welcomed by the UK steel sector. We must congratulate Anne-Marie Trevelyan on her efforts and success in swiftly agreeing a deal with the US that will greatly benefit the sector. The United States represents a key export market for UK producers but since the introduction of Section 232 tariffs by the previous administration, steelmakers across the UK have been selling into the United States at a huge disadvantage.

“The tireless work of the Trade Secretary and her department has resulted in a strong deal for the UK which removes long-standing export barriers and opens up access to this important market once more. Without this agreement UK producers would have remained at a significant competitive disadvantage in US markets to competitors in the EU and Japan, with their exports severely curtailed. From June, UK steel producers will benefit from tariff-free access to customers across the US – from the Atlantic to the Pacific.’’

The Steel Manufacturers Association (SMA), also commented on the news, stating that they were 'pleased with the 232 agreement between the United States and the United Kingdom announced today'.


The deal will end the threat of retaliatory tariffs by the UK and will implement a tariff rate quota structure with a melted and poured requirement.''

SMA President Philip K. Bell

SMA President Philip K. Bell stated: ''This agreement will help with the problems of global excess steel capacity, transshipment, illegal dumping and subsidies. The deal will end the threat of retaliatory tariffs by the UK and will implement a tariff rate quota structure with a melted and poured requirement.''

Source: BBC News