US President Donald Trump signed a proclamation on Tuesday doubling the tariffs for steel and aluminium to 50 per cent from the earlier 25 per cent. However, the UK will be exempt from the tariff. Prime Minister Keir Starmer-led UK government stated that the two countries agreed on the need to implement a tariff deal as soon as possible. The metal tariffs for everyone else will increase from June 4. 

Trump had made the announcement to increase steel and aluminium tariffs on Friday. “We’re going to bring it from 25 per cent to 50 per cent, the tariffs on steel into the United States of America,” said Trump, adding that the steep tariffs would “further secure the steel industry”. “At 25 per cent, they can sort of get over that fence…At 50 per cent, they can no longer get over the fence,” he said on Friday in Pennsylvania. 

Meanwhile, the decision to skip the UK came after British trade minister Jonathan Reynolds and US Trade Representative Jamieson Greer met in Paris on Tuesday during a meeting of the Organization for Economic Cooperation and Development. 

A UK spokesperson said that the country was the first to secure a trade deal with the US and they remain committed to protecting British business and jobs across key sectors. “We’re pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs. We will continue to work with the US to implement our agreement, which will see the 25 per cent US tariffs on steel removed,” said the spokesperson. 

Starmer had met Trump on May 8 and they agreed to reduce tariffs on UK imports of cars and steel to the US, while Britain would lower tariffs on beef and ethanol. 

IMPACT ON INDIA

Trump’s 50 per cent tariff on steel and aluminium could severely impact India’s engineering goods’ shipments, said the Engineering Export Promotion Council of India. India exports around $5 billion worth of steel, aluminium and related products to the US annually. 

Chairman of EEPC India, Pankaj Chadha said that the tariff hike would make exports of these items more expensive and could lead to a decline in shipments. He suggested that like the UK, India should also seek a similar waiver during the ongoing bilateral trade agreement (BTA) negotiations. 

“This may not be the right time for such unilateral tariffs, especially when BTA talks are underway. It could complicate negotiations. The proposed hike could jeopardise engineering exports worth around USD 5 billion,” Chadha said.

Meanwhile, Union Minister HD Kumaraswamy had said on Monday that the tariffs would have a minor impact on India. “Minor impact will be there…A minor problem is there because we are not exporting in a big way. The only thing is, if the consignment, which is already on its way (to the US from India), reaches after June 4, then there is some problem as they have to pay 50 per cent tariffs,” Kumaraswamy said.