Keir Starmer was forced to abandon part of his ‘historic’ trade deal with the US on the eve of Donald Trump‘s State visit.
Whitehall sources said months of lobbying had failed to persuade the White House to implement an agreement to slash tariffs on British steel exports to zero, despite one being announced.
The blow came as Mr Trump flew into the UK last night for his second State visit, after being hosted in 2019 at Buckingham Palace by Queen Elizabeth.
The US President said his trip would be focused on spending time with his ‘friend’ King Charles at Windsor Castle, whom he called an ‘elegant gentleman’.
But he was also willing to talk to Sir Keir about making the trade deal ‘a little bit better’.
Despite the warm words, the sources said it was now clear that the original plan for zero tariffs on UK steel would not be implemented, delivering a devastating new blow to the beleaguered industry.
The so-called deal, covering cars and steel, was announced by the Prime Minister in May.
But the steel proposals have never been brought in due to US concerns they could open up a back-door route for cheap Chinese imports into America.
Keir Starmer was forced to abandon part of his ‘historic’ trade deal with the US on the eve of Donald Trump’s State visit
Mr Trump flew into the UK last night for his second State visit, after being hosted in 2019 at Buckingham Palace by Queen Elizabeth
Sources said it was now clear that the original plan for zero tariffs on UK steel would not be implemented, delivering a devastating new blow to the beleaguered industry (file pic)
Officials have spent recent days in Washington desperately trying to revive the zero per cent plan.
But the idea has now been shelved, with the PM focused instead on securing a ‘permanent’ 25 per cent tariff – half the rate paid by the rest of the world.
The climbdown is embarrassing for the PM, who hailed the original agreement in May as a ‘historic’ deal which would save thousands of British jobs.
Tory trade spokesman Andrew Griffith said last night: ‘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.’
And Gareth Stace, of UK Steel, said it was now vital that the Government prevents the dumping of cheap foreign steel in the UK.
But a Government spokesman insisted securing a permanent 25 per cent rate would give the sector greater certainty about US trade.
Speaking ahead of his departure from the US last night, Mr Trump said his State visit would focus on building relations with the Royal Family, who will host the President and First Lady at Windsor Castle from today.
Tory trade spokesman Andrew Griffith said last night: ‘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’
Starmer will have to negotiate a string of difficult subjects with the unpredictable President, including Peter Mandelson’s sacking as ambassador to Washington over his links with paedophile Jeffrey Epstein
He said: ‘Charles, who’s now king, is my friend. I’m there also on trade. I’m into helping them.
‘But primarily, it’s to be with King Charles and Camilla. It’s an honour to have him as King. He represents the country so well, he’s such an elegant gentleman.’
After a day of pageantry today, Mr Trump will travel to the PM’s country retreat Chequers for talks with Sir Keir.
The two leaders are expected to confirm major deals on technology.
But the PM will have to negotiate a string of difficult subjects with the unpredictable President, including the Gaza conflict, Ukraine, Peter Mandelson’s sacking as ambassador to Washington over his links with late paedophile Jeffrey Epstein, Net Zero and free speech in the UK.
