A proposed deal to eliminate US tariffs on British steel has been shelved, it has emerged on the eve of Donald Trump’s second state visit.
The UK is understood to have paused its push to cut the levy, which stands at 25%, to zero as originally agreed earlier this year.
Mr Trump had hinted at possible tariff relief for British steel as he boarded Air Force One earlier on Tuesday, but Downing Street would not be drawn on the scope for movement ahead of the two-day stay.
Mr Trump told reporters he was “into helping” Britain on refining the transatlantic trade deal signed earlier this year, which slashed trade barriers on a number of goods but failed to agree terms for steel.
“We’ve made a deal, and it’s a great deal, and I’m into helping them,” he said.
“They’d like to see if they could get a little bit better deal. So, we’ll talk to them.”
Asked on Tuesday afternoon whether any progress was expected in cutting the levy, the Prime Minister’s official spokesman said: “There’s a range of things that we’re going to discuss with the President… we’ve obviously got a landmark trade deal.
“(We will) continue to discuss with them how to take that further. But, for obvious reasons, I’m not going to get ahead of those outcomes.”
The US leader was greeted by Foreign Secretary Yvette Cooper as well as RAF personnel from The King’s Colour Squadron forming a guard of honour as he arrived on Tuesday evening at London Stansted airport.
Mr Trump and his wife, Melania, later travelled onwards to Winfield House, the official residence of the US ambassador in Regent’s Park.
Before arriving in Britain, he hailed the “great honour” of being hosted by the King at “the ultimate” Windsor Castle for his unprecedented second state visit.
On Wednesday, Mr Trump will visit the royal residence, where he will be treated to a ceremonial welcome and a lavish state banquet, before meeting Sir Keir Starmer at the Prime Minister’s country estate, Chequers, on Thursday.
There are no public-facing engagements set for the president, with thousands expected to take part in major protests against his two-day stay.
The Liberal Democrats said the Government had “thrown in the towel” to the US President, who “reneged on” the original agreement for US steel tariffs to fall to zero as part of the British-American trade pact.
Deputy party leader Daisy Cooper said: “It looks like the Government has thrown in the towel instead of fighting to stand up for the UK steel industry.
“We were told US tariffs on UK steel would be lifted completely, now that’s turned out to be yet another promise Trump has reneged on.
“It just shows Trump is an unreliable partner and that rewarding a bully only gets you so far.
“The best way to protect our economy is to stand with our allies in Europe and the Commonwealth and end Trump’s damaging trade war for good.”
Shadow business secretary Andrew Griffith said: “On May 8, the Prime Minister claimed credit for negotiating steel tariffs to zero.
“Now it turns out that was untrue and it’s actually 25%. Either his maths or his relationship with the truth clearly needs some work.”
