The UK Pauses Steel and Aluminum Zero Tariff Quota Deal with the US, Shifts Focus to 'Permanent 25% Tariff'

September 16th. As per the Financial Times, it is reported that UK Prime Minister Starmer has put aside the notion of "certain quota of zero tariffs for UK steel exports to the US" and is inclined to negotiate with Trump to obtain a "permanent" 25% tariff treatment for all UK steel exports. Starmer's allies disclosed that if UK steel exports could secure a fixed 25% tariff commitment, it would bring "certainty" to the industry and give it a competitive edge - as this tariff rate is only half of the 50% tariff paid by other countries. UK government officials indicated that the current 25% preferential tariff enjoyed by UK steel is intended to be designated as a "permanent treatment". Although a "formal agreement" has not been reached yet, it is expected to be announced during Trump's three-day state visit to the UK starting on Tuesday.