Trade Cases

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

Written by Ethan Bernard


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

Read more from Ethan Bernard

Latest in Trade Cases

Leibowitz: Trump takes aim at trade with a tariff ‘punt gun’

The tariffs are intended to produce more investment and jobs in US manufacturing. But first, there will be a cosmic change, potentially wiping out millions of jobs in the short run. While administration officials will no doubt cringe at the comparison, it reminds me of the effort to undercut fossil fuels production to address climate change. Led by Democrats, the effort was to destroy fossil fuels so that renewable energy sources would have more space to grow. The result: inflation and electoral defeat in 2024.