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US Skips UK Steel and Aluminum Tariffs as Both Countries Eye Quick Trade Deal

The United States announced on Tuesday that it would not double steel and aluminum tariffs on Britain. This announcement came hours after the UK Government said that the two countries had agreed to a deal on tariff relief as soon as possible.

The U.S. announcement that exempts British aluminum and steel from a 50% tariff increase came in a Tuesday proclamation by U.S. president Donald Trump.

The U.S. trade representative Jamieson Greer and British Trade Minister Jonathan Reynolds met on Tuesday in Paris during an OECCD meeting.

A spokesperson for the UK government said: "The UK was first to secure a deal with the U.S. in the last month, and we are committed to protecting British businesses and jobs in key sectors."

We're happy that, as a result our agreement with the U.S. steel in the UK will not be subjected to these additional duties. We will continue working with the U.S. in order to implement our agreement which will remove the 25% U.S. steel tariffs.

On May 8, British Prime Minister Keir starmer and Trump agreed to lower tariffs for UK steel and car imports to the U.S. Britain also agreed to lower tariffs for beef and ethanol. However, the implementation of the agreement has been delayed.

UK Steel, the industry body for British steel, had warned earlier that doubling tariffs would cause a "body-blow" to British steel.

Greer and Reynolds, Britain's Trade Ministry said Greer met with Reynolds to discuss the pace at which the bilateral trade agreement of May 8 was being implemented. Both sides agreed that consumers and businesses in each country had to begin to feel its benefits.

The British trade ministry released a statement following the meeting that said "The two discussed their shared desire for the Economic Prosperity Deal to be implemented as soon as possible, including agreements on sectoral duties."

Greer's office did not immediately comment on the meeting.

Starmer's spokesperson stated that once the deal was implemented, it would eliminate tariffs for the "majority" of steel products exported to the United States. "We'd continue to anticipate that this will be the case," regardless of Trump's 50% tariff.

Sarah Jones, the minister of industry, was also reported to be meeting with steel industry representatives on Tuesday.

Greer replied, in French, to reporters in Paris when asked earlier if 50% tariffs on Wednesday would be implemented, "We'll have to see."

Reynolds is in Paris and Brussels for a three-day visit. He will meet with counterparts from the Group of Seven, OECD and other countries in Paris. Then he'll talk to EU Trade Commissioner Maros SEFCIOVIC.

Last month, Britain signed deals with both the U.S., and the European Union, its two largest trading partners. However, these are not formal trade agreements and details have yet to be set.

Plans to reduce red tape in the food industry are still being finalised with the EU agreement. Before the EU deal came into effect, Britain announced on Monday that it would eliminate border checks for fruit and vegetables imported to the EU. These were due to take place in July. Reporting by Alistair Smout, Leigh Thomas, Andrea Shalal, and Jasper Ward, in Washington, and Tomaszjanowski, Lisa Shumaker, and Bill Berkrot in London.

(source: Reuters)