U.K. Secures Brief Relief from Steep 50% Tariffs

The United Kingdom has received a temporary exemption from the hefty steel and aluminum tariffs imposed by U.S. president Donald Trump, which have been increased to 50%.

As reported by BBC news, this new executive order will hike import taxes for American companies sourcing these metals from abroad from 25% to 50%, effective June 4. However, the U.K. will continue to face a lower rate of 25% for now.

Trump indicated that the U.K.deserves “different treatment” due to the Economic Prosperity Deal (EPD) established on May 8, which is still in the works and aims to eliminate all tariffs on steel and aluminum.

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Nonetheless, he cautioned that if it appears that the United Kingdom does not adhere to key elements of this deal by July 9 or later, tariffs could be raised again.

This latest move comes after Trump’s previous back-and-forth approach with tariffs globally; he initially imposed them widely before rolling many back. Now his focus has shifted toward addressing issues in global steel and aluminum markets heavily influenced by China.

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The executive order was officially signed on June 3.The rationale behind these increased tariffs is that they are intended “to more effectively combat foreign nations dumping low-cost surplus steel and aluminum into the U.S., which undermines domestic industry competitiveness,” according to Trump’s statement.