UK aims to melt down Trump’s steel tariffs in new trade push

Britain’s Business and Trade Secretary Jonathan Reynolds has expressed confidence that the UK will succeed in persuading the Trump administration to ease its so-called “reciprocal tariffs” on British imports and secure exemptions for UK steel, as part of a broader trade deal negotiated between Prime Minister Keir Starmer and US President Donald Trump last month.

Speaking at the British Chambers of Commerce Global Annual Conference in London, Reynolds said there was “no doubt in my mind we can get progress on reciprocal tariffs,” when asked by POLITICO about ongoing negotiations with Washington.

The 10 per cent tariffs, championed by Trump as a measure to level the playing field, have been a point of concern for British exporters.

Reynolds also voiced optimism about resolving a related issue: the 25 per cent tariffs still imposed by the US on British steel and aluminium imports. These tariffs date back to the Trump administration’s earlier tenure and have remained a thorn in transatlantic trade.

According to Reynolds, the current stumbling block is the “melt and pour” rule — a US regulation requiring steel to be entirely produced, from melting to pouring, in its country of origin to qualify for tariff exemptions. This poses a particular challenge for Tata Steel UK’s Port Talbot plant, the nation’s largest steel exporter, which has temporarily shut its furnaces during a multi-year transition to environmentally sustainable production. As a result, Port Talbot has been relying on imported steel from Tata’s facilities in India and the Netherlands.

“Implementing the deal with Trump is very much about making sure Port Talbot gets the benefit of it as well,” Reynolds said, underscoring the UK’s push for exemptions from the strict US-origin rules so that the Welsh facility isn’t excluded from trade relief.

Reynolds’ remarks came as he unveiled the government’s new Trade Strategy, which outlines measures to protect critical domestic industries like steel, amid efforts to adapt to green technologies and navigate global competition.

Meanwhile, Starmer’s special business adviser, Varun Chandra, has been in Washington this week to continue technical-level negotiations. The US has set a July 9 deadline for concluding trade discussions with several countries, including the UK.

Reynolds also addressed speculation over whether Britain’s digital services tax, which targets the revenues of tech giants such as search engines, online marketplaces, and social media platforms, might be part of the trade discussions. He dismissed the idea.

“In the wider discussions, you know, US concerns about digital services tax have been there,” he said. “But I think it's always been wrong to portray the US position as somehow demanding a reduction in tax for US tech companies in exchange for trade access, export access to the US.”

By Tamilla Hasanova