UK Secures Unique Trade Advantage: Avoiding 50% Steel Tariffs While Maintaining Special Relationship with US

If you are listening to the United Kingdom Tariff News and Tracker, here’s the latest must-know on trade between the United States and the UK—and, as always, we’ll cut through the noise to bring you the facts.

Let’s start with the headline that matters: the UK remains uniquely positioned compared with Europe and most of the world when it comes to US steel and aluminium tariffs. While President Trump drove tariffs on steel imports from many nations up to a steep 50% in June 2025, the UK was specifically exempt from this increase. According to Charterfields, British steel and aluminium are still subject to the earlier 25% tariff, not the new 50% rate. This exemption is a rare signal of preferential treatment—one that underscores the ongoing, if complicated, special relationship between London and Washington during a period of global trade upheaval.

Behind the scenes, things have certainly not been calm. In June, President Trump and Prime Minister Starmer signed a notable US-UK trade deal, easing tariffs on autos and aerospace, sectors that are crucial to both economies. CFR’s trade calendar also notes that, just before this, the UK avoided the sweeping April tariffs Trump announced for the European Union—a move widely seen as a direct shot at Brussels rather than London. The Reading Research News explains Europeans were quick to reject these tariffs, but the UK’s carve-out remains a talking point among analysts.

Still, no one should mistake this for a full-scale thaw in trade tensions. The Trump administration has been aggressive in its tariff policies, targeting allies and rivals alike with a sometimes unpredictable mix of escalations and pauses. The UK’s current 25% steel and aluminium tariff—while lower than the 50% faced by other nations—is still double the typical historic rate for allied trading partners. These measures continue to ripple through supply chains, affecting prices for manufacturers and, ultimately, consumers on both sides of the Atlantic.

Looking ahead, the question is whether the UK will retain its privileged status. While summer 2025 saw some progress, including a pause in new reciprocal tariffs between the US and Europe, the landscape remains volatile. The Trump administration’s approach has been tactical—granting exemptions based on negotiations, but always with the threat of another round of tariffs if talks falter. For now, the UK stands apart, but trade experts caution the situation could shift rapidly if political winds change.

Thank you for tuning in to United Kingdom Tariff News and Tracker. Be sure to subscribe so you never miss an update as this fast-moving story develops.

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Episode Transcript

Speaker 1 (00:00):
If you are listening to the United Kingdom Tariff News
and Tracker, here's the latest must know on trade between
the United States and the UK, and as always, we'll
cut through the noise to bring you the facts. Let's
start with the headline that matters. The UK remains uniquely
positioned compared with Europe and most of the world when
it comes to US steel and aluminium tariffs. While President

(00:23):
Trump drove tariffs on steel imports from many nations up
to a steep fifty percent in June twenty twenty five,
the UK will specifically exempt from this increase. According to
charter Fields, British steel and aluminium are still subject to
the earlier twenty five percent tariff, not the new fifty
percent rate. This exemption is a rare signal of preferential treatment,

(00:47):
one that underscores the ongoing, if complicated, special relationship between
London and Washington. During a period of global trade upheaval,
behind the scenes, things have certainly not been calm. In June,
President Trump and Prime Minister Starmer signed a notable US
UK trade deal, easing tariffs on autos and aerospace sectors

(01:10):
that are crucial to both economies. Gfr's Trade Calendar also
notes that just before this, the UK avoided the sweeping
April tariffs Trump announced for the European Union, a move
widely seen as a direct shot at Brussels rather than London.
The reading Research News explains, your unions were quick to

(01:31):
reject these tariffs, but the UK's carve out remains a
talking point among analysts. Still, no one should mistake this
for a full scale faw in trade tensions. The Trump
administration has been aggressive in its tariff policies, targeting allies
and rivals alike, with the sometimes unpredictable mix of escalations
and pauses. The UK's current twenty five percent steel and

(01:54):
aluminium tariff, while lower than the fifty percent faced by
other nations, is still double the tipical historic rate for
allied trading partners. These measures continue to ripple through supply chains,
affecting prices for manufactures and ultimately consumers on both sides
of the Atlantic. Looking ahead, the question is whether the

(02:15):
UK will retain its privileged status. While summer twenty twenty
five saw some progress, including a pause in new reciprocal
tariffs between the US and Europe, the landscape remains volatile.
The Trump administration's approach has been tactical, granting exemptions based
on negotiations, but always with the thread of another round

(02:37):
of tariffs if talks falter. For now, the UK stands apart,
but trade experts caution the situation could shift rapidly if
political winds change. Thank you for tuning in to United
Kingdom Tariff News and Tracker. Be sure to subscribe so
you never miss an update as this fast moving story develops.

(02:57):
This has been a quiet please production for mo check
out quite please dot ai