Britain’s trade chief to press White House on Trump tariffs in Washington trip – POLITICO

Britain’s ambassador to the U.S., Peter Mandelson, warned last weekend that he expects America’s 10 percent tariff on U.K. goods is “here to stay” despite the U.K.’s efforts. | Pool photo by Bonnie Cash/EPA

When the U.S. raised tariffs on the metal imports to 50 percent at the start of June, the U.K.’s tariff rate remained at 25 percent thanks to the trade deal Trump struck with Starmer in May. But further tariff relief for the sectors, promised in the deal, is yet to materialize.

Getting Trump to cut both reciprocal and steel and aluminum tariffs will be difficult, said Maxime Darmet, an economist at Allianz Trade. The U.S. wants to keep the 10 percent tariffs “as a minimum” and warned that steel and aluminum “are two sectors they really want to protect.”

“Negotiations are going to be tough on agri-food trade,” Darmet added, pointing out that Washington will push Britain to offer more market access for U.S. farmers in exchange for further tariff relief. London committed to aligning with EU food standards at a key summit with Brussels in May, he pointed out, making it tricky to open its market further.

Reynolds acknowledged last month that it will be difficult to get the Trump administration to implement cuts to the 25 percent steel and aluminum tariffs promised in the U.K.’s trade agreement with the U.S.

That’s because of the U.S.’s “melt and pour rules” that require steel imported to the U.S. to be manufactured in its country of origin, he said. Britain’s largest steel mill at Port Talbot is currently importing steel from India and the Netherlands as it transitions to new electric arc furnaces.

Gareth Stace, director-general of industry lobby UK Steel, warned earlier this month: “It remains unclear whether, and when, our second-largest export market will fully reopen, and when our U.S. customers can confidently place orders knowing they will receive the agreed zero-tariff rate.”

The Department for Business and Trade declined to comment.

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