British Prime Minister Optimistic About Upcoming US Tariff Agreement Implementation

LONDON - British Prime Minister Keir Starmer expressed optimism regarding the imminent implementation of a tariff reduction agreement with the United States, particularly concerning tariffs on British steel imports. During a recent parliamentary session, Starmer indicated that he anticipates the tariffs will be reduced to zero within a matter of weeks, thus circumventing a looming deadline that could see these tariffs escalate to 50%.

The agreement, reached last month between Starmer and U.S. President Donald Trump, aims to alleviate tariffs on British steel, aluminum, and automotive imports into the U.S. in exchange for reciprocal tariff reductions on U.S. beef and ethanol imports. However, the execution of this deal remains pending.

On Tuesday, the U.K. successfully averted the imposition of a 50% tariff on steel exports to the U.S., with the current rate remaining at 25% until the new agreement is fully implemented. Despite this, President Trump's announcement included a stipulation that British steel could be subjected to the heightened tariff rate starting July 9 if the agreed-upon deal is not executed by then.

When questioned about whether President Trump was altering the terms of the established agreement and imposing a new deadline on the U.K., Starmer conveyed his assurance that the deal's implementation was on track. He stated, "We have a deal, and we're implementing it, and within a very short time, I'm very confident we will get those tariffs down in accordance with the deal."

British Trade Minister Jonathan Reynolds met with U.S. Trade Representative Jamieson Greer on the same day as Trump's proclamation. The two officials committed to expediting the implementation of the sectoral tariff reductions outlined in their agreement. The industry body UK Steel noted that Reynolds' prompt actions helped to maintain stability in the steel trade by preventing the 50% tariff from taking effect. However, they raised concerns that ongoing uncertainty about the timeline could deter U.S. customers from placing orders with British suppliers.

Gareth Stace, Director-General of UK Steel, emphasized the urgency for both the U.S. and the U.K. to transform their agreement into a tangible reality to eliminate the tariffs entirely. He stated, "The U.S. and U.K. must urgently turn the May deal into reality to remove the tariffs completely."