Starmer Abandons Plan for Zero US Tariff on UK Steel Ahead of Trump State Visit

Prime Minister Keir Starmer has abandoned a plan to secure a zero-percent US tariff on British steel exports after months of lobbying failed to persuade the White House, Whitehall sources said, days before President Donald Trump arrived in the UK for a State visit.

Officials in London and Washington had spent weeks attempting to push through an arrangement announced by the prime minister in May that would have eliminated US tariffs on UK steel. That plan has been shelved, officials said, and government negotiators are now focused on securing a permanent 25 percent tariff on UK steel exports to the United States.

Whitehall sources and officials involved in the talks said the zero-tariff proposal foundered on US concerns that it could create a back-door route for cheap Chinese steel to enter the American market. Attempts in recent days to revive the zero-percent plan in Washington were unsuccessful, the sources said.

The 25 percent figure being pursued by the UK government would, according to the sources, be a permanent arrangement that provides greater certainty for the British steel sector. A government spokesperson said securing a fixed rate "would give the sector greater certainty about US trade." The spokesperson declined to comment on diplomatic discussions.

The reversal is likely to intensify scrutiny of the May announcement in which Mr. Starmer described the agreement on cars and steel as "historic" and said it would save thousands of British jobs. Opposition Conservatives seized on the change. Andrew Griffith, the Tory trade spokesman, said: "The Prime Minister claimed credit for negotiating steel tariffs to zero. Now it turns out that was untrue and it's actually 25 per cent. Either his maths or his relationship with the truth clearly needs some work."

Industry groups urged the government to guard against cheaper imports undermining domestic production. Gareth Stace, director general of UK Steel, said it was "now vital that the Government prevents the dumping of cheap foreign steel in the UK."

President Trump arrived in the UK on the eve of the State visit, which organisers said would include time with King Charles at Windsor Castle and talks with Mr. Starmer at the prime minister's country residence, Chequers. Mr. Trump said he was "into helping them" on trade but that the main purpose of the trip was to spend time with the king. He described Charles as "my friend" and "such an elegant gentleman."

The two leaders are expected to discuss technology deals and a range of geopolitical and bilateral issues, including the wars in Gaza and Ukraine, the UK's climate policies, and questions around free speech and diplomatic appointments. British officials will also have to navigate fallout from the recent removal of Peter Mandelson as ambassador to Washington amid scrutiny of his past associations.

The US maintains longstanding tariffs and trade remedies designed to protect its steel industry, and Washington has signalled caution when agreements might create routes for steel from third countries to enter the American market at below-market prices. UK negotiators had argued that a zero tariff would boost British exports and secure jobs, while US officials raised concerns about enforcement and the potential for circumvention.

Securing a permanent tariff at a lower level than the wider global rate — officials described the 25 percent figure as "half the rate paid by the rest of the world" — would represent a compromise intended to balance market access and protections against dumped imports. Critics said the change of course undercuts the government's earlier claims and leaves parts of the steel industry exposed to continued uncertainty.

The government said negotiations with the United States on trade measures will continue. Officials declined to provide a timetable for any final agreement, saying talks remained ongoing as Mr. Trump and Mr. Starmer prepare for formal discussions this week.