Trade Cases

US, UK reach trade deal that includes Section 232 'alternative'

May 8, 2025

The US and UK governments on Thursday announced a trade deal that includes an “alternative” to Section 232 tariffs on British steel and aluminum.

A White House fact sheet stated that the pact “creates a new trading union for steel and aluminum.”

The US also lauded UK efforts “to combat global steel excess capacity.” That provided the foundation from which to negotiate “an alternative arrangement to the Section 232 tariffs on steel and aluminum.”

Recall that renewed S232 tariffs on the UK and other traditional US allies went into effect in March.

A request for additional information from the Office of the US Trade Representative, the chief US trade negotiator, was not returned by time of publication.

Part of larger deal

The agreement on steel and aluminum forms just part of a wide-ranging US-UK trade pact.

“The deal removes longstanding UK market barriers, creating a $5-billion opportunity of new exports for U.S. farmers, ranchers, and producers,” the US Commerce Department said in a statement.

Commerce also noted that the reciprocal tariff rate of 10%, originally announced on “Liberation Day,” would remain in place.

“This deal is the first of many as President Trump continues to deliver on his promises to the American people,” Commerce Secretary Howard Lutnick said.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.