UK Delays Push for 0% Steel Tariffs During Trump’s Visit

The UK government has postponed its efforts to eliminate the 25% tariffs on British steel entering the United States. This decision comes just before Donald Trump’s second state visit to the UK, which began on July 7, 2023. Initially, there had been optimism that a proposal to reduce these tariffs to 0% would be finalized, but it has now been shelved.

Reports indicate that while President Trump hinted at potential tariff relief as he departed for the UK, Downing Street has refrained from commenting on the issue ahead of the two-day visit. Upon arrival at Stansted Airport on Tuesday evening, Trump expressed his willingness to assist the UK in refining the transatlantic trade deal established earlier this year, which reduced tariffs on various goods but did not settle on steel.

“We’ve made a deal, and it’s a great deal, and I’m into helping them,” Trump remarked to reporters. He acknowledged that the UK would like to explore improvements to the agreement. “So, we’ll talk to them,” he added.

When queried about any advancements regarding the steel tariffs, the Prime Minister’s official spokesperson stated, “There’s a range of things that we’re going to discuss with the President… we’ve obviously got a landmark trade deal.” However, the spokesperson avoided offering specifics, emphasizing that discussions will continue to evolve.

Upon Trump’s arrival, he was welcomed by Yvette Cooper, the UK Foreign Secretary, and members of the Royal Air Force who formed a guard of honour. Following his arrival, Trump and his wife, Melania Trump, proceeded to Winfield House, the official residence of the US ambassador in London.

During his visit, Trump plans to attend a ceremonial welcome at Windsor Castle and a state banquet before meeting with Sir Keir Starmer at the Prime Minister’s country estate, Chequers, on July 8, 2023. Notably, there are no public engagements scheduled for the President, with significant protests anticipated against his visit.

The delay in reducing steel tariffs has drawn criticism from political figures in the UK. The Liberal Democrats accused the government of capitulating to Trump, claiming he has failed to fulfil the initial agreement to reduce tariffs to zero. Deputy party leader Daisy Cooper stated, “It looks like the Government has thrown in the towel instead of fighting to stand up for the UK steel industry.”

Cooper expressed discontent with the uncertainty surrounding the tariff negotiations, asserting that the original promise of tariff elimination had not been realized. She emphasized the importance of aligning with European allies and the Commonwealth to safeguard the UK economy.

Shadow business secretary Andrew Griffith also criticized the government’s handling of the situation, referencing a statement made by the Prime Minister on May 8, 2023, which claimed that negotiations had successfully lowered steel tariffs to zero. Griffith remarked, “Now it turns out that was untrue and it’s actually 25%. Either his maths or his relationship with the truth clearly needs some work.”

The shelving of the tariff discussions raises questions about the UK’s trade strategy and its ability to negotiate effectively with the US, particularly in light of the ongoing challenges facing the UK steel industry. As the visit progresses, the focus will remain on how both nations can navigate these complex trade issues while fostering their diplomatic relationship.