UK Aluminium Exports to US Exempted from Tariffs Under New Trade Deal

UK Aluminium Exports to US Exempted from Tariffs Under New Trade Deal

UK exports of aluminium to the United States will no longer face tariffs following a new agreement reached between the two countries. The deal, announced on Thursday, removes the Section 232 tariffs that had been imposed on British aluminium and steel, providing relief to UK producers who have faced prolonged trade friction since the measures were first introduced. The agreement eliminates tariffs on UK aluminium exports to the US, a move welcomed by industry groups and manufacturers.

While the deal also reduces import taxes on British cars to 10% for the first 100,000 vehicles sold in the US annually, the majority of UK goods entering the US will still be subject to a broad 10% tariff imposed by the Trump administration earlier this year. The agreement is described as a limited rollback of recent tariffs rather than a comprehensive trade deal, and both governments have stated that further details will be negotiated and formalized in the coming weeks. A new US-UK trade deal removes Section 232 tariffs on UK imports of steel and aluminium, which market participants said was encouraging for addressing transshipments from China.

Industry leaders have welcomed the tariff removal, noting that it allows UK aluminium producers to plan with greater confidence and re-establish vital transatlantic trade links. However, some challenges remain, particularly for the UK aluminium recycling sector, which has been disproportionately impacted by previous tariffs. The Aluminium Federation (ALFED) has called for further government support to ensure a resilient and future-ready aluminium industry in the UK.

No formal agreement has been signed yet, and no date has been set for when the tariff removal will take effect. Both governments have indicated that the details of the arrangement will be finalized in the coming weeks.

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