Washington is facing increasing pressure from global trade partners to fulfill its long-standing commitments to tariff reductions. The steel, aluminum, and automotive tariff cuts announced months ago have yet to be implemented, leaving European, Asian, and UK businesses struggling under U.S. trade restrictions.

In May of this year, UK Prime Minister Keir Starmer welcomed the "world-leading" agreement reached with U.S. President Donald Trump at the Jaguar Land Rover factory. He stated that the agreement would eliminate U.S. tariffs on UK steel.

However, three months have passed, and nothing has changed. The tariff on UK steel remains at 25%. Peter Brennan, head of trade and economic policy at UK Steel, stated that orders from the U.S. have "plummeted." He claimed that some companies may not survive this crisis. On the other hand, a competitor's stance is more pessimistic, claiming that without assistance, these companies could be forced to close by the end of the year.

The delay stems from the U.S. "melt-and-pour" rule, which only allows tariff reductions for steel produced entirely within the UK. Since Tata Steel UK closed its blast furnace last year, the company will not meet this requirement until its new electric arc furnace facility is operational in 2027. London has been urging Washington for an exemption, but negotiations are progressing slowly.

Tim Rate of Tata Steel stated that this is not due to a lack of effort from the UK government, but rather because U.S. departments are overwhelmed. He pointed out that despite the potential opportunities worth billions of dollars for UK exporters being at risk, these opportunities have yet to materialize. London officials insist they are working to finalize the agreement as soon as possible, but industry insiders warn that ongoing delays could hinder unilateral action.

EU and Other Countries Demand Swift Tariff Reductions

The EU is also in a similar predicament. Regardless of whether an agreement is reached: last July, European Commission President Ursula von der Leyen shook hands with Trump on a 15% tariff cap in Scotland, and Brussels has acknowledged that this cap would also reduce automotive production.

However, the reality seems otherwise. The U.S. still imposes a 50% tariff on EU steel and a 25% tariff on automobiles. German automakers are sounding alarms. Hildegard Müller, president of the German Association of the Automotive Industry (VDA), stated that so far, the agreement has not provided any clear information or relief for German automakers. She noted that this has resulted in billions of dollars in losses for them.

Japan and South Korea signed agreements with Washington in July. Reportedly, automotive tariffs will be reduced to 15%, and steel tariffs will also be lowered. However, the treatment of automobiles differs, as Japanese and South Korean automakers still have to pay a 25% tariff.

Japan's chief trade negotiator, Yoshinori Akizawa, stated, "We are still seeing the impact; the losses have not stopped." Fried expressed that he believes a Japanese automaker is losing nearly 100 million yen (approximately $680,000) per hour due to tariff pressures.

South Korea is one of the countries pushing for tax reductions. Bloomberg Industry Research estimates that Hyundai and Kia's additional expenses this year could reach up to $5 billion. The squeeze on profit margins and weak global demand have also impacted the 15% tariff.

U.S. Hints at Imposing More Tariffs, Canada Imposes Direct Current Tariffs

Washington has not only failed to reduce tariffs but has taken the opposite approach; the latest measures not only do not eliminate tariffs but also impose additional tariffs on Chinese imports. Just weeks ago, on August 15, Washington expanded the tariff list to nearly 300 new steel and aluminum product codes, covering 50% of U.S. tariffs. This expansion took effect immediately.

This adjustment has angered partners hoping for concessions from the EU. EU officials have attributed the suspension of the joint statement promised with Washington to disagreements over digital trade rules. Countries like Japan and South Korea have been waiting for executive orders to implement tariff reductions.

Critics are beginning to question Washington's commitments. Former EU Trade Commissioner Cecilia Malmström stated that permanent delays must be avoided to prevent the process from devolving into endless negotiations and excessive obstruction.

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