The British government is set to urge the incoming Trump administration to implement a zero-tariff steel trade agreement, aiming to protect its steel industry from potential U.S. import taxes. The move comes as the U.S. considers extending its Section 232 tariffs—which currently impose a 25% levy on foreign steel—beyond their initial expiration period.
UK Trade Secretary Kemi Badenoch is expected to lead negotiations, arguing that a tariff-free deal would benefit both economies by reducing costs for manufacturers and stabilizing supply chains. The push aligns with broader European efforts to secure exemptions from U.S. steel tariffs, which have strained transatlantic trade relations since 2018.
Analysts warn that success hinges on Trump’s trade policy priorities, which may prioritize domestic production over foreign agreements. If rejected, the UK steel sector—already grappling with high energy costs and global oversupply—could face renewed pressure. The outcome will also signal whether the U.S. plans to maintain its protectionist stance or shift toward more open trade under Trump’s second term.
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