European Commission and UK representatives are in talks with the US to lower their steel tariffs, as the July 9 deadline was extended to Aug. 1 and US President Donald Trump announced that copper, another key metal entering the US from other countries, is set to face a new tax of 50%.
The EC and UK governments are hoping to strike deals before Aug. 1, as Trump mentioned on July 8 that talks were progressing with the EU and that he was “probably two days off” from sending a letter unveiling a new tariff rate. In the UK, steelmakers are waiting to find out if they will be able to avoid tariffs of 50% on their products.
“The deal struck between the Prime Minister and Trump two months ago is still hanging in the balance, leaving the UK steel industry in the realm of continued uncertainty,” Gareth Stace, Director-General of UK Steel, said on July 9. “It remains unclear whether, and when, our second-largest export market will fully reopen, and when our US customers can confidently place orders knowing they will receive the agreed zero-tariff rate.
“The UK steel industry urgently needs confirmation from the US administration that our tariff rate will remain at 25% while the final details of the deal are resolved, rather than escalating to 50%. While a confirmed 25% rate would offer some short-term certainty, only a swift resolution will deliver the clarity and relief we urgently require,” Stace concluded.
In May, the US and UK agreed that the US would allow UK steel and aluminum into the US free of tariffs, as part of a wider deal that already saw US export tariffs for the UK’s automotive and aerospace sectors slashed.
From June 30, the agreement — called the UK-US Economic Prosperity Deal — allowed UK motor manufacturers to sell up to 100,000 vehicles to the US at a tariff of 10%, while tariffs on UK aerospace exports have been cut to zero. In return, the UK has scrapped tariffs on beef and US ethanol imports. However, nothing has yet moved on steel and aluminum.
“Europe still has 50% export tariffs to the US; hopefully, this blanket tariff will change soon, but it is not clear when and by how much. Overall, it is very difficult to do business in this mess,” a source from an Italian mill said.
The US is the UK’s second-largest export market for steel. According to data from UK Steel, the UK exported 180,000 mt of semi-finished and finished steel to the US in 2024, worth GBP370 million. This accounted for 7% of the UK’s total steel exports by volume and 9% by value.
The US is also the EU’s second-largest export market for steel. According to data from Comex, the EU exported around 2.7 million mt of finished steel products to the US in 2024 out of a total of 16.7 million mt of exports.
