The UK steel industry is facing growing anxiety as a key deadline approaches that could see a 25% US tariff slapped on British steel exports starting July 9.

Unless the UK and US finalize a trade agreement within hours, the tariff—introduced under US national security laws—will take full effect, threatening jobs, exports, and the future of Britain’s steel sector.

What's Happening?

British and American trade officials are locked in last-minute talks to avoid the tariff. The US had previously agreed to partial exemptions for some allies, but the UK’s steel industry is still waiting for a permanent deal.

The main issue lies in technical rules: the US wants proof that all steel qualifying for tariff-free access is “melted and poured” in the UK. That’s a problem for some British manufacturers who import raw or semi-finished materials and process them domestically.

Why It Matters

The US is one of the UK’s biggest export markets for steel. A 25% tariff would make British products more expensive and less competitive, putting contracts and jobs at risk.

Companies are already feeling the pressure. Some have paused shipments or delayed investment decisions while they wait for a resolution. Industry leaders warn that if the tariff goes ahead, it could lead to real economic damage.

Is There Hope for a Deal?

Yes—but time is short. Both governments have said they want to find a solution. The UK has proposed a quota system that would allow a certain amount of steel to enter the US duty-free each year. US officials are still reviewing the offer.

Complicating matters is a broader trade deal the two countries recently signed, covering sectors like energy, tech, and automotive. However, steel and aluminum were left out of that agreement, requiring separate talks.

What’s Next?

If no agreement is reached by July 9, the tariff will automatically kick in. That could lead to immediate cost increases for exporters and further strain a sector that has already faced years of challenges.

UK steelmakers are watching closely—and hoping for a breakthrough before the clock runs out.