The Conservatives are today [17 September] saying that Keir
Starmer's “enormous failure” to bring down US tariffs on steel,
despite claiming they had been reduced to 0%, represents a
“fundamental breach of trust” with the steel industry.
The government proudly declared in May that a deal had been
reached with the US to remove tariffs on steel exports.
A No10 press release heralded the news, saying that thanks to the
PM's work, the steel industry would “no longer face tariffs” as
Starmer had “negotiated the 25% tariff down to zero”.1
Yet the Financial Times reported yesterday that the government
has actually abandoned its attempts to reduce the tariffs on
steel exports to the US to 0 per cent.2
In other words, the government was extremely misleading about its
tariff deal. And now our vital steel industry will pay the
price.
The impact of this is huge. Gareth Stace, Director General of UK
Steel, said the 25 per cent tariffs were a “devastating blow”,
and both Alan Bell, Chief Commercial Officer of British Steel,
and Rajesh Nair, Chief Executive Officer of Tata Steel UK, said
that orders are being cancelled because of the
tariffs.3
In a letter to Business and Trade Secretary , Shadow Secretary has demanded his
counterpart come clean about the government's failure.
He has also called on the government to reverse its surrender and
continue fighting for zero tariffs.
With President Trump visiting the UK, has an opportunity to put
things right.
Shadow Business and Trade Secretary said:
“The success of the visit by the President of our closest ally
and trading partner is important to everyone in the UK.
“Relationships are based on honesty and trust, so it is of huge
concern to see that Starmer's much-lauded 0% steel tariff deal
with the US doesn't exist – despite No10 trumpeting it many
months ago.
“At a time of crisis in the Prime Ministers' leadership, he needs
to come clean and admit whether it is the truth or maths that he
doesn't understand.”
ENDS
Notes to Editors
1 The Financial Times, 16 September 2025,
link.
2 The Financial Times, 16 September 2025,
link.
3 UK Steel, Press Release, 12 March
2025, link; The
Guardian, 18 March 2025, link; The
Independent, 19 March 2025, link.
The Prime Minister and his ministers misled the
public over the removal of US steel tariffs, warning no deal
would cost jobs:
-
A press release from the Prime Minister's Office said
‘the Prime Minister negotiated the 25 per cent tariff down to
zero', without which job losses would be lost in
Scunthorpe. The press release said: ‘The UK steel
industry – which was on the brink of collapse just weeks ago –
will no longer face tariffs thanks to today's deal. The Prime
Minister negotiated the 25% tariff down to zero, meaning UK
steelmakers can carry on exporting to the US. This follows last
month's intervention from the Prime Minister to take control of
British Steel to save thousands of jobs in Scunthorpe' (PMO,
Press Release, 8 May 2025, link).
-
, at the time Minister
for Trade Policy and Economic Security, said in the House of
Commons the deal with the US will remove tariffs on steel
exports to the US. ALEXANDER: ‘Furthermore,
the deal secures the removal of the new tariffs the US imposed
on steel and aluminium in March, through duty-free quotas. It
reinforces our commitment to the steel industry, following our
swift action last month to protect British Steel and its 2,500
employees' (Hansard, Vol 766 Col 897, 8 May 2025,
link).
Labour ministers' failure to remove steel tariffs is
‘devastating' for industry:
-
Gareth Stace, Director General of UK Steel, said that
25 per cent tariffs on steel imported to the US ‘could not come
at a worse time'. Gareth Stace, Director General of UK
Steel said: ‘Today's imposition of tariffs on UK steel from the
US administration is hugely disappointing. President Trump must
surely recognise that the UK is an ally, not a foe. Our steel
sector is not a threat to the US, but a partner to key
customers, sharing the same values and objectives in addressing
global overcapacity and tackling unfair trade.These tariffs
couldn't come at a worse time for the UK steel industry, as we
battle with high energy costs and subdued demand at home,
against an oversupplied and increasingly protectionist global
landscape. What's more, the EU will also be taking trade
restrictive action soon that will amplify the impact of US
tariffs. It is essential that the UK Government not only
continues efforts to negotiate exemptions with the US, but also
takes decisive action to bolster our trade defences. We greatly
appreciate all the efforts that have been made so far and will
continue working closely with our Government to secure the best
possible outcome' (UK Steel, Press Release, 12 March
2025, link).
-
Gareth Stace, Director General of UK Steel, said the 25
per cent tariffs on steel imported to the US are a ‘devastating
blow'. Gareth Stace, Director General of UK Steel
said: ‘The imposition of US tariffs on UK steel would be a
devastating blow to our industry. The US is our second largest
export market after the EU. At a time of shrinking demand and
high costs, rising protectionism globally, particularly in the
US, will stifle our exports and damage over £400 million worth
of the steel sector's contribution to the UK's balance of
trade. It is deeply disappointing if President Trump sees the
need to target UK steel, given our relatively small production
volumes compared to major steel nations. The UK produces
world-leading steel, supplying the US with high-quality
products for defence, aerospace, stainless, and other critical
sectors, materials that simply cannot be replicated elsewhere.
At the same time, the introduction of further US tariffs will
inevitably divert global trade flows, with excess steel
potentially redirected to the UK market. This reinforces the
urgent need for watertight UK trade measures in 2026 to prevent
surges in imports following the UK's steel safeguards expiry.
Accelerating the UK's CBAM to 2026 would provide an additional
layer of protection against unfairly priced steel. The UK
Government must act decisively to shield our domestic industry
from the fallout of rising global protectionism' (UK Steel,
Press Release, 10 February 2025, link).
-
Rajesh Nair, Chief Executive of Tata Steel UK said that
US customers are cancelling orders because of the 25 per cent
tariffs. Rajesh Nair, Chief Executive of Tata Steel
UK, said: ‘Customers are already talking to us and wanting to
cancel orders, and in some cases are asking us for compensation
for potential orders' (The Guardian, 18 March 2025,
link).
-
Alan Bell, Chief Commercial Officer of British Steel
said that customers are ‘considering cancellation' because of
the tariffs. Alan Bell, Chief Commercial Officer of
British Steel, said that where British Steel faces competition
in the US they have had to ‘exit that business immediately'
with ‘customers that are concerned about the impact of the
tariffs and, at the moment, are considering order cancellation'
and that customers are ‘making moves to purchase that steel
elsewhere' (The Independent, 19 March 2025, link).
Labour are doing damage to the steel
industry:
-
Labour have only added more regulation and tax to steel
industry through the Jobs Tax, the Employment Rights Bill and
over zealous net zero costs. The National Insurance
Jobs Tax is costing the steel industry £32 million a
year and the Employment Rights Bill £150 per worker
meaning that industry is facing a hundreds of millions tax
rise. Meanwhile, the cost of over zealous net zero rules are
choking off industry and making it less competitive - the
average price of electricity for manufacturing businesses has
increased by 6 per cent since Labour came to power (The
Independent, 19 March 2025, link).
-
Labour admitted that the current model of steel funding
is ‘coming to the end of its life' but have not put forward a
plan. Speaking to The Mirror Starmer said
that the current model is ‘coming to the end of its life',
leaving the struggling industry reliant on a cycle of bailouts
and takeovers (The Mirror, 8 June 2023, link).
Labour have broken every promise they made to the
steel industry, again:
-
pledged to ‘give UK steel
its future back'. ‘Our investment will bring growth
and economic security. Our planning reforms will turbocharge
building of critical infrastructure. Our plans to get Britain
building again will mean fuller order books and security for
both industry and worker. We will put party politics
aside, partner with devolved regions, industry and trade unions
alike to give UK steel its future back' (The Labour Party,
Press Release, 23 October 2023, link).
-
encouraged the Conservative
government to do ‘whatever is necessary' to protect jobs in the
steel industry. ‘Will the Prime Minister now commit to
working with us and the trade unions to change this absurd
situation, to put British steel first and to do
whatever is necessary to protect those jobs?'
(Hansard, Vol 691 Col 911, 24 March 2021, link).
-
said that Labour has a plan
to ‘buy, make and sell more [steel] in Britain' ‘instead of
handing public money to companies overseas'. ‘Instead
of handing public money to companies overseas to make and
manufacture steel products, Labour's plan to buy, make and sell
more in Britain means that we can use more British steel,
create more quality jobs here and boost our businesses'
(Labour List, 22 August 2021, link).
-
Under Labour, steel production fell by almost 50 per
cent. In 1997 the UK produced 18.5 million tonnes of
steel a year – by 2010 that figure was just 9.7 million tonnes
(ONS, The British steel industry since the 1970s, 18
January 2016, link).
-
Under Labour, employment in the UK steel industry was
cut by over half. In 1997, 70,000 worked in the steel
industry. In 2010, this had fallen to 30,600 – a fall of 40,000
jobs or 56 per cent (Office of National Statistics, 18
January 2016, link).
Letter to
Rt Hon MP
Old Admiralty Building
Admiralty Place
London
SW1A 2DY
United Kingdom
17 September 2025
Dear Peter,
Steel Tariffs
It has been widely reported that you are dropping your attempts
to reduce tariffs on steel exports to the US to 0 per
cent.1
This is despite, on 8 May 2025, the Prime Minister's office
publishing a press release which said:
‘Thousands of jobs have been saved as the Prime Minister
secured a first-of-a-kind trade agreement with the US … The UK
steel industry – which was on the brink of collapse just weeks
ago – will no longer face tariffs thanks to today's deal. The
Prime Minister negotiated the 25% tariff down to zero, meaning UK
steelmakers can carry on exporting to the US'.2
And, on the same day, the former Minister for Trade Policy and
Economic Security MP giving a statement in
Parliament which said:
‘Furthermore, the deal secures the removal of the new tariffs
the US imposed on steel and aluminium in March, through duty-free
quotas. It reinforces our commitment to the steel industry,
following our swift action last month to protect British Steel
and its 2,500 employees'.3
In both instances, Ministers in this government said a deal had
been reached with the US to cut steel tariffs to zero per cent.
This has now been proven to be untrue, with no such deal in
existence. This is a significant breach of public trust.
Furthermore, the Prime Minister said the deal would save
thousands of jobs, inadvertently admitting that thousands of jobs
will be lost because of your enormous failure to secure a deal.
The impact of this failure cannot be understated. Gareth Stace,
Director General of UK Steel, described the steel tariffs as a
‘devastating blow', and both Alan Bell, Chief Commercial Officer
of British Steel, and Rajesh Nair, Chief Executive Officer of
Tata Steel UK, said that orders are being cancelled because of
tariffs.4
This news will come as a further blow to the industry who are
already reeling from the £32 million Jobs Tax your government
placed upon them and the sky high energy costs associated with
your impossible net zero targets.5
I call on you to correct the record and to reverse your decision
to not pursue a further reduction in tariffs for the sake of the
British steel industry.
I will be placing this letter in the public domain.
Kind regards,
MP
Shadow Secretary of State for Business and Trade
[1] The Financial Times, 16 September 2025,
link; The
Guardian, 16 September 2025, link; BBC
News, 16 September 2025, link.
2 The Financial Times, 16 September 2025,
link.
3 Hansard, Vol 766 Col 897, 8 May 2025,
link
4 UK Steel, Press Release, 12 March 2025,
link; The
Guardian, 18 March 2025, link; The
Independent, 19 March 2025, link.
5 The Independent, 19 March 2025, link; Conservative
Research Department Analysis, 19 March 2025, available on
request.
