UK Reportedly Urges Trump Administration To Relax Import Rules Hindering Steel Trade Deal

The UK has reportedly asked U.S. negotiators to modify domestic-production requirements, which are hindering an agreement to reduce tariffs on British steel exports.

According to a Bloomberg News report, citing people with knowledge of the negotiations, the UK has requested that steel imports from European countries, such as the Netherlands, which are subsequently used to manufacture steel products in the UK, be considered British for the purposes of U.S. tariffs.

The report added that the change will exempt products made by Tata Steel UK, which no longer operates a furnace in the UK and imports raw steel from other countries, from U.S. tariffs. U.S. negotiators are reportedly considering such an exemption, as long as steel from countries seen by President Donald Trump as strategic rivals isn’t covered under the UK deal.

The U.S. has previously insisted that steel must be melted and poured in the UK to be considered British for tariff purposes, a criterion that Tata Steel, one of the country’s top producers, cannot fulfill.

Retail sentiment on Stocktwits about iShares MSCI United Kingdom ETF (EWU) was in the ‘neutral’ territory at the time of writing.

The Bloomberg report added that the trade agreement could be reached soon. Trump had said earlier this week that he expects to refine the trade deal with the UK during his official visit in September.

The deal could help UK Prime Minister Keir Starmer’s government, which faced criticism from opposition parties after the initial trade deal with the U.S. in May. While the UK was the first country to announce a framework for a trade agreement, several issues, including steel tariffs, were unresolved.

Trump wanted the UK to accept more beef and U.S. ethanol, while London wanted exemptions for cars and steel products. U.S. tariffs on UK steel products remain at 25% as the country was exempted from a June hike of tariffs to 50%.

Also See: Japan Exports Slip Again In June As Trump Tariffs Bite, With Doubts Over Trade Deal

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