The United Kingdom is struggling to secure US agreement to make an agreement functional to abolish the dictatorial to the British steel Before Wednesday’s deadline (09.07.2025), when US officials could choose to increase the contribution to 50%.
Eliminating duties is vital to the already problematic British steel industry, because the US is the second largest export destination for the alloy from the United Kingdom.
“We are working with the US to overcome it as soon as possible,” British Prime Minister Kir Starmer, Tom Wells, told reporters on Monday (07.07.2025). “The best thing we can do for the industry is to implement this deal,” he continued according to Bloomberg sources.
President Donald Trump plans to announce trade agreements and address new duties on Monday, as countries are negotiating through the highest punitive measures for their exports to the US before Wednesday. The timetable for the talks appeared to be redefined after US officials signaled that the trade partners would have a margin until August 1 before the duties began to apply.
According to the outline of the agreement reached in May, the US has agreed to abolish 25% duties on the UK steel imports and instead to implement a quota with the so -called percentages of the most favored state. But when Starmer and Trump agreed last month to implement part of the deal, steel was absent.
A Presidential Decree that increased duties on steel imports from most countries to 50% excluded the United Kingdom by July 9. After that, the US Secretary of Commerce “can increase the current duties to 50%if it finds that the United Kingdom has not complied” with US requirements.
These requirements relate to “the safety of steel and aluminum supply chains”, including the “nature of ownership” of the relevant steelmakers, according to the May document. UK Minister of Commerce Jonathan Reynolds said last month that the issue of ownership was not the main obstacle – although Jingye Group remains the legal owner of the latest remaining Britain’s underlying blankets in Skanorp.
Reynolds said that the main issue delaying the implementation of the agreement was a debate on the “melting and exhaustion rules” that cover the place of production of steel. In the context of previous trade agreements, the US insisted that steel should melt and pour it into the United Kingdom. This requirement is becoming more and more difficult to fulfill because the British Steel is the only producer who still has a loudspeaker, as Tata Steel UK closed her own last year. The Tata’s electric arc furnace will not be usable by the end of 2027.
Wells refused to say if he was sure that an agreement could be reached by Wednesday, only saying that “discussions are going on”. “The US has made it clear that they want to continue discussing with us,” Tom Wells said.