Steel tariffs show the unpredictability that comes with Donald Trump
Donald Trump’s second state visit stands in contrast to his previous one. The world is a completely different place to when Queen Elizabeth II hosted him in 2019. Not least the trade war that the US has launched.
The Prime Minister scrambled to try and protect from the worst of Trump’s tariffs, parading a new trade deal with the US. However, the fact that a proposed deal to eliminate US tariffs on British steel have been shelved is a reminder of the unpredictability that comes with the Trump administration.
Tariffs of 25 per cent are currently applied to steel exports to the US. The Government pushed to cut the levy to zero after dire warnings over the security of the steel sector.
Despite the US President saying he was “into helping” Britain on refining the transatlantic trade deal signed earlier this year, which slashed trade barriers on a number of goods but failed to agree terms for steel, help won’t be forthcoming on steel tariffs it would seem.
This is deeply embarrassing for Sir Keir Starmer and his Government. Despite the charm offensive the British steel sector will continue to be weighed down by tariffs.
Shadow business secretary Andrew Griffith said: “On May 8, the Prime Minister claimed credit for negotiating steel tariffs to zero. Now it turns out that was untrue and it’s actually 25 per cent.”
However, it has to be noted that other countries face tariffs of 50 per cent, putting the UK in a competitive position in relation to other countries.
Where Britain is unrivalled however is the lure of the Royal Family. It was evident that Trump was basking in the company of the King and Queen.
Whether that translates into further favourable policy treatment remains to be seen.