Overview

• Prime Minister Sir Keir Starmer and President Donald Trump have agreed to suspend 50% US tariffs on British steel and aluminium for five weeks, with officials racing to secure a tariff carve-out for Tata Steel UK by mid-July.
• Tata Steel UK warns that without an exemption by July 9 it could face 50% levies on its £150 million of annual exports to the United States.
• US trade regulations mandate that steel qualify for tariff relief only if it is “melted and poured” in its country of origin, blocking Tata Steel’s current use of Indian and Dutch imports.
• Port Talbot’s blast furnaces closed in January 2024 and the new £1.25 billion electric arc furnace is scheduled to begin scrap-based production by late 2027.
• Industry leaders are urging the UK government to reassess domestic tariff rate quotas and expedite trade talks to protect the steel sector from global overcapacity and supply-chain disruptions.