17th Jun 2025 09:50
(Alliance News) - Work to get US tariffs on UK steel removed will go on in the coming "days, weeks and months", the UK Transport Secretary has said, after a deal was finalised that left the future of those levies up in the air.
US President Donald Trump and Prime Minister Keir Starmer signed off a US-UK deal that will slash trade barriers on goods from both countries at the G7 on Monday.
But US tariffs for the steel industry will stand at 25% for now rather than falling to zero as originally agreed. This is less than the US global rate of 50% for steel and aluminium.
The two leaders pledged to "make progress towards 0% tariffs on core steel products as agreed", the Department for Business and Trade said.
The Chinese ownership of the British Steel could be a sticking point in the deal on steel as the executive order signed by Trump suggests the US wants assurances that the metal originates in the UK.
"The UK also committed to working to meet American requirements on the security of the supply chains of steel and aluminium products intended for export to the US and on the nature of ownership of relevant production facilities," the order states.
After signing it, the US President was asked whether steel tariffs would be eliminated, to which he replied: "We're gonna let you have that information in a little while."
In April, the UK government used emergency powers to take control of British Steel and continue production at the site after Chinese owners Jingye proposed shutting the Scunthorpe site's two blast furnaces and other key steelmaking operations.
But its future is still uncertain, with Transport Secretary Heidi Alexander saying the government is eager for it to be "part of a commercially-operated business with private investment".
"We're talking to a number of third parties about that. At the moment, no options are off the table," she told Sky News.
She said there was still "more work to do" to get steel tariffs eliminated, including on "technical detail".
"We're working through some technical detail around steel because we want to bring that 25% tariff that applies at the moment obviously down further," she told BBC Breakfast.
She said the UK is "working on getting that implemented".
"And we're determined to go further and we'll be working on those issues around steel in the coming days, weeks and months," she added.
Alasdair McDiarmid, assistant general secretary of the Community union, said it was "absolutely vital" to secure a deal on steel as quickly as possible.
"Our steel producers and their US customers need an end to the current state of uncertainty to allow normal business to resume.
"Crucially, we must see a full exemption for all UK steel exports to the US – without that guarantee some of our leading steel businesses could be left behind, with a threat to jobs and livelihoods."
It comes as a GBP500 million five-year deal has been struck between Network Rail and British Steel, which Alexander said was a "vote of confidence".
British Steel is to supply 337,000 tonnes of rail track, with a further 80-90,000 tonnes to be provided by other European manufacturers.
The Network Rail contract will start on July 1 and is set to provide the company with 80% of its rail needs.
Jingye, which bought British Steel in 2020, launched a consultation in March which it said would affect between 2,000 and 2,700 jobs, despite months of negotiations and a GBP500 million co-investment offer from the government.
The Scunthorpe plant has been producing steel for Britain's railways since 1865.
The Network Rail agreement is the first major public procurement since the government's emergency legislation was passed.
Network Rail's group director for railway business services Clive Berrington said: "We are committed to buying British where it makes economic sense to do so and British Steel remain extremely competitive in the provision of rail and will remain our main supplier in the years ahead."
Craig Harvey, British Steel's commercial director for rail, added: "The contract represents a huge vote of confidence in UK workers and British industry, underpinning the vital role we play in ensuring millions of passengers and freight operators enjoy safe, enjoyable and timely journeys on Britain's railways."
Charlotte Brumpton-Childs, national officer at the GMB union, said it was a "crucial first step in securing the future of our steel industry" and urged ministers to make sure British Steel has a "constant flow of orders" from other infrastructure projects.
By Helen Corbett and Helen William
Press Association: Finance
source: PA
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