The UK has become the first trading partner to secure a deal with the US, which will slash the tariff on steel to zero, Kallanish learns from a UK government statement released on 8 May.

The US tariff being reduced to zero from 25% will allow UK steelmakers to continue exporting material to the US. It notes the domestic steel industry was "on the brink of collapse just weeks ago," highlighting its recent intervention in taking control of British Steel to save thousands of jobs in Scunthorpe.

As part of the trade deal, US tariffs on UK car imports will reduce from 27.5% to 10%, which the government says will save hundreds of millions a year for Jaguar Land Rover alone.

This will apply to an annual quota of 100,000 UK cars, almost the total the UK exported last year.

This comes just days after the UK also secured a trade deal with India, which will see India’s tariff on UK cars reduced to 10%, from 100% previously.

"It is one of many international deals that the Government is landing to boost our economy – following an Indian trade deal which will add £4.8 billion to the UK economy and £2.2 billion in wages every year," it notes.

UK Prime Minister Keir Starmer says: "This historic deal delivers for British business and British workers protecting thousands of British jobs in key sectors including car manufacturing and steel.”

Business and trade secretary Jonathan Reynolds notes: "I am delighted our calm approach and proactive engagement with the US has resulted in this deal which cuts tariffs for UK industry and cuts costs for businesses. Businesses across the country will be glad to see our approach working, but this is only the beginning. We look forward to strengthening our trading relationship with the US through a wider economic deal, which will help us to deliver on our Plan for Change to provide economic stability and make this country fit for the future."

The UK will get preferential treatment from the US in any further tariffs imposed as part of Section 232 investigations, the government adds.

The announcement of the trade deal comes just weeks after UK steelmakers said they faced orders being cancelled by US buyers due to the tariffs, while manufacturers were implementing contingency plans to try avoid redundancies amid the uncertainty.

Industry association UK steel notes it is not yet clear whether the zeroing of duties will apply to steel derivative products and whether only steel melted and poured in the UK will benefit from the 0% tariff.

UK Steel director general Gareth Stace comments: “The UK Government’s cool-headed approach and perseverance in negotiating with the US clearly paid off. This deal will offer major relief to the UK steel sector at a time when it is battling numerous other challenges, not least global overcapacity, high energy costs and weak demand.”

“The impact of US steel tariffs is not limited to UK exports, but also the damaging consequences of trade diversion from other markets. Bolstering the UK’s trade defences is therefore also paramount," he adds.