Trump: Treasury Secretary Bessent, Commerce Secretary Lutnick, and USTR Ambassador Greer to meet Chinese representatives in London on June 9, 2025, to discuss trade deal.

Trump: Treasury Secretary Bessent, Commerce Secretary Lutnick, and USTR Ambassador Greer to meet Chinese representatives in London on June 9, 2025, to discuss trade deal.

U.S. President Donald Trump's recent decision to impose a 50% tariff on steel and aluminum imports, effective June 4, has sent shockwaves through global trade markets. While the U.S. steel industry is set to benefit, European steel producers, including major exporters in Germany and Sweden, face a significant hit. The U.K., however, has been granted a temporary reprieve, with a 25% tariff remaining in place while details of Britain's trade deal with the U.S. are finalized [1].

The U.S. tariffs, which were initially set at 25% and doubled to 50%, aim to protect the U.S. steel industry amidst a surge of cheaper foreign steel imports and weak global demand. Canada and Mexico are the largest exporters of steel to the U.S., but European countries are also major suppliers. The new tariffs will particularly affect European steel exporters, including those in Germany, Italy, Sweden, and the Netherlands [1].

The U.K. was initially exempted from the full 50% tariff, with a 25% levy in place while the details of the U.S.-UK trade deal are worked out. Trump stated that the U.K. warranted "different treatment" due to the "Economic Prosperity Deal" inked on May 8. The U.K. accounts for 7% of the U.K.'s total steel exports, with the trade worth £370 million ($500 million) in 2024 [1].

The U.S. accounts for 7% of the U.K.'s total steel exports, with the trade worth £370 million ($500 million), in 2024, according to UK Steel. The Director-General of UK Steel, Gareth Stace, stated that the U.K.'s exemption from the 50% duty was "a welcome pause," but urged London and Washington to turn their trade deal into reality to remove the tariffs completely. "Continued 25% tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike," he said in a statement. "However, uncertainty remains over timings and final tariff rates, and now U.S. customers will be dubious over whether they should even risk making U.K. orders," he added, warning that the levies come at "an already crushing time for our steel industry, with global oversupply and weak demand" [1].

In a significant development, U.S. Treasury Secretary Bessent, Commerce Secretary Lutnick, and USTR Ambassador Greer are set to meet Chinese representatives in London on June 9, 2025, to discuss a potential trade deal. This meeting is part of ongoing negotiations aimed at mitigating the impact of U.S. tariffs on UK industries and deepening bilateral economic ties [2].

The UK and the U.S. have been engaged in negotiations for an economic prosperity deal since the February 2025 meeting between the UK Prime Minister and President Trump. The deal aims to address the impact of U.S. tariffs on UK industries and promote deeper economic ties. The UK government has emphasized the need for a constructive and mature dialogue to address the situation, while also considering retaliatory measures such as tariffs on some US imports [2].

The ongoing negotiations and potential trade deal with China are crucial for the U.K.'s economic stability. The U.K. is a relatively open economy, with international trade (exports plus imports of goods and services) equivalent to 62% of GDP in 2024. Disruption to global trade and supply chains is likely to affect the UK more than other, less open, economies [2].

In conclusion, Trump's tariff changes have significant implications for the U.K.'s steel exports and broader trade relations with the U.S. and China. The ongoing negotiations for a trade deal will be critical in determining the future of these relationships and the impact on the U.K. economy.

References:
[1] https://www.cnbc.com/2025/06/04/trumps-50percent-steel-tariffs-hit-the-world-but-uk-spared-full-blow.html
[2] https://commonslibrary.parliament.uk/research-briefings/cbp-10240/