UK Rushes To Finalize US Steel Deal Before Trump’s July 9 Tariff Deadline

The U.K. is racing to finalize a trade agreement with President Donald Trump to avoid higher U.S. steel tariffs ahead of the July 9 deadline.

“We are working with the U.S. to get this over the line as soon as possible,” U.K. Prime Minister Keir Starmer’s spokesperson, Tom Wells, told reporters on Monday, as cited by Bloomberg. “The best thing we can do for industry is to get this deal implemented.”

The VanEck Steel ETF (SLX) was down more than 1.3% in morning trade. The ETF has gained nearly 20% this year and 4% over the past 12 months. Despite the downswing, retail sentiment on Stocktwits around SLX improved to ‘bullish’ territory from ‘neutral’ a week ago. 

At stake is the U.K.’s exemption from a 50% tariff on steel and aluminum exports to the U.S. The country is currently subject to a 25% duty, but that could double unless the trade deal between the two countries, known as the U.S.-U.K. Economic Prosperity Deal (EPD), signed in May, is fully implemented before next week’s deadline.

Steel exports to the U.S. are a key part of the U.K. economy, with the American market being its second-largest customer. Trump has warned that if the U.K. is found to be non-compliant with the EPD, tariffs “on or after July 9” may be raised.

In February, Trump instated 25% tariffs on steel and aluminum. In June, those were doubled for most countries – but the U.K. received a temporary reprieve due to the EPD. Unless a final agreement is reached, that exemption may be lifted.

In the U.S., steelmakers have generally backed the tariffs, arguing they help shield American jobs and protect the industry from underpriced imports. The American Iron and Steel Institute said the duties help guard against market disruptions caused by global oversupply.

U.S. equity markets opened in the red on Monday even after the Trump administration hinted that the July 9 tariff deadline could be extended to August 1. The SPDR S&P 500 ETF (SPY) edged 0.25% lower, while the Invesco Trust Series 1 (QQQ) ETF, which tracks the tech-heavy Nasdaq 100, was down 0.4%. 

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