UK presses Team Trump to make trade deal real

LONDON — Britain’s Trade Secretary Jonathan Reynolds will meet with his U.S. counterpart Jamieson Greer next week in a bid to hash out a timeline for lifting tariffs on British auto, steel and aluminum exports to the United States.

U.S. President Donald Trump announced the U.S.-U.K. Economic Prosperity Deal to great fanfare in the Oval Office three weeks ago. But British businesses fear it could be weeks — or longer — before the 25 percent sectoral tariffs hitting key sectors are finally lifted.

Reynolds and Greer will hold talks on the margins of an informal gathering of G7 trade ministers meeting in Paris, shortly after an OECD trade ministers summit in the French capital.

Many British firms either aren’t exporting to the U.S. or are being forced by their American customers to pay the duties as they await clarity on tariff relief. Trump first slapped extra tariffs on British steel and aluminum in March before issuing further tariffs on automotive imports.

A federal court struck down Donald Trump’s tariffs on dozens of countries on Wednesday night, ruling the U.S. president overstepped his powers by implementing the measures without the approval of Congress.

The court’s ruling, which the White House is set to appeal, nullified a 10 percent tariff imposed on all U.S. trading partners, including the U.K.

But it does not cover the 25 percent sectoral tariffs.

“The UK was the first country to secure a deal with the US in a move that will protect British business and jobs across key sectors, from autos to steel,” a U.K. government spokesperson said. “We are working to ensure that businesses can benefit from the deal as quickly as possible and will confirm next steps in due course.”

‘Nothing has changed’

Under the Economic Prosperity Deal agreed on May 8, the U.S. and U.K. agreed to establish new quotas for British steel and aluminum imports. They agreed that both countries would “coordinate the timing of their respective tariff reductions to be as soon as practicable, taking into consideration their respective domestic processes.”

The Department for Business and Trade (DBT) has told British firms the new steel quotas will be finalized within two to three weeks, said a senior business representative granted anonymity to speak candidly about private discussions. The Trump administration could potentially enact the measures through an executive order, they pointed out.

Fully removing the tariffs will also require changes to rules of origin in the U.S., including for U.K. car exports and car parts. “We don’t have clarity on auto parts,” the senior business representative said, adding businesses have “not been told by DBT how many other areas would need work” in the deal. For now “nothing has changed,” they said, and “millions of orders are at risk” as the tariffs remain in effect. 

“The devil is in the detail,” said Stephen Morley, president of the Confederation of British Metalforming, a business group representing 200 U.K. manufacturers.

“Our members who are dealing directly with DBT are being told hopefully two to four weeks” for new steel quotas to be established. Right now, Morley added, his members are “patiently waiting” to resume their exports.

Laurence McDougall, owner and managing director of All Steels Trading, a steel trader in North Yorkshire, said the firm’s U.S. customers have pulled back on orders since the tariffs came into effect.

The company exports specialized steel and steel products used in shipbuilding, roller conveyor systems like those in Amazon warehouses and automotive manufacturing components.

“When we heard the news that the duty had been removed on U.K. steel, we advised our customers, and then we started sending containers shortly after,” McDougall said. While the goods were on the water and about to arrive in the U.S. “that's when we discovered that it was just a deal in principle” and yet to be ratified.