The government still doesn’t know if the British steel and aluminium industry will be hit with 50 per cent tariffs tomorrow, just hours before Donald Trump ramps up his global trade war.
The US president sent shockwaves through the global economy when he announced on Friday that he would raise the tariffs from 25 per cent to “further secure” the industry in his country.
A much-lauded UK-US trade deal unveiled last month should have exempted Britain from steel tariffs completely when they were slashed to zero as part of the agreement.
But the deal is yet to be implemented, meaning the industry could be slapped with double the tariffs it had before.
As questions grow on whether Britain will escape Wednesday’s escalation, a Downing Street source said No 10 doesn’t “quite know what the announcement will be”.
“No one has seen the detail of what [Trump] is going to announce tomorrow. The deal and the quote we’ve agreed is zero, but the question is just a case of when that comes in”, they said, just hours before the fresh tariffs were set to hit.
The source said the timing of when the exemptions agreed in the deal will come into force is “in the US’s gift”, adding that the government hoped to have something agreed soon.
Business secretary Jonathan Reynolds is currently in Paris, where he will meet with his US counterpart Jamieson Greer in a last-ditch attempt to secure a carve-out from the hike and pin down a timeline for the implementation of the deal.
Asked whether British companies could be facing 50 per cent tariffs on Wednesday, the prime minister’s official spokesperson said it is “up to United States to make their own policy announcements”.
“I’m not going to get ahead of announcements that are for the United States. What you have seen so far is the UK and the US sign a landmark deal to protect car and steel manufacturers.
“When it comes to the implementation of the agreement, that work is ongoing and the business secretary will be meeting with his counterpart in Paris”, he added.
It comes after The Independent reported on Monday that the government is urgently seeking clarification from the US on what Mr Trump’s latest announcement on tariffs means for the UK.
Sir Keir Starmer and Mr Trump announced the broad terms of an agreement last month that would exempt the UK from some of the US president’s tariffs on steel and cars while increasing market access for other goods.
The prime minister hailed the announcement as a major achievement, saying the UK was the first nation to reach such an agreement with Mr Trump. But the details are still being worked out ahead of a formal deal, and the government hopes for an agreement within weeks.
Mr Reynolds’ meeting with Mr Greer comes amid uncertainty about the future of Mr Trump’s tariffs after a US court last week ruled many of them unlawful, before an appeals court reinstated the levies pending a further hearing.
Andrew Griffith, Conservative shadow business secretary, said: “Labour told the British public we had a deal with the US – but one month on, there is no deal in sight, meaning British businesses and workers continue to suffer because of Labour’s failed negotiations.
“After snatching the winter fuel payment, lying about not increasing taxes, and misleading the public by saying the US trade deal was done, the public will rightly not trust a word Labour says.
“As all the other political parties wrangle over how to spend more taxpayers’ money, only the Conservatives are committed to being responsible with the public finances.”
Gareth Stace, the director general of the UK Steel trade body, warned that President Trump’s latest announcement was a “body blow” and could lead to orders for British steel being delayed or cancelled.
“To wake up this morning to a doubling of the tariffs to 50 per cent will be of serious concern and confusion to our sector here in the UK,” he said on Saturday.
