Starmer and US President Donald Trump agreed last month on an exemption deal that would mutually reduce tariffs on steel, aluminum and automobiles, while reducing tariffs on products such as beef and ethanol. However, the agreement has not yet entered into force.
On Tuesday, the UK was exempted from the Trump administration's planned 50% tariffs and the current 25% rate remained in place. However, Trump's memo warned that a 50% tariff could be imposed on steel imported from the UK as of July 9 if the deal is not implemented.
Starmer, when asked whether this warning meant that the agreement had been revised, stated that the parties were committed to implementing the agreement reached. “We have an agreement and we are implementing that agreement. I am confident that in a very short time tariffs will fall in line with the agreement,”
UK Trade Secretary Jonathan Reynolds also met with US Trade Representative Jamieson Greer shortly before Trump's announcement. During the meeting, it was agreed to work together to implement the sectoral tariff reductions under the agreement as soon as possible.
Industry body UK Steel said Reynolds' swift intervention had helped stabilize the steel trade by avoiding a 50% tariff, but warned that uncertainty over the timing of the process could drive US customers away from British steel.
UK Steel Managing Director Gareth Stace added: “The US and the UK must implement the agreement reached in May to fully remove tariffs as a matter of urgency.”
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