ALFED continues to work closely with the Department for Business and Trade (DBT) in monitoring developments relating to the UK-US aluminium agreement under the Economic Prosperity Deal (EPD), and the associated risk of increased tariffs.
As previously communicated, under the terms of the EPD, the US reserved the right to raise tariffs on aluminium imports from the UK from 25% to 50% after 9 July 2025, if it deemed the UK non-compliant with the agreement.
We are pleased to share that DBT officials remain in regular dialogue with their US counterparts and have confirmed that the UK is fully compliant and actively cooperating under the terms of the deal. Based on the latest discussions, the view from DBT is that if the US takes no further action, the current 25% tariff rate will remain in place. Any change to this would require a new US proclamation.
While we understand the desire from industry for a more definitive written confirmation from the US, it is important to note that the process is now contingent on US administrative decisions. DBT are working intensively to clarify this point, including seeking clarity across time zone differences.
The relevant clause from the official US proclamation (May 2025) reads:
“On or after July 9, 2025, the Secretary may adjust the applicable rates of duty and construct import quotas for steel and aluminium consistent with the terms of the EPD, or he may increase the applicable rates of duty to 50 percent if he determines that the United Kingdom has not complied with relevant aspects of the EPD.”
Commenting on the situation, ALFED CEO Nadine Bloxsome said:
“We continue to maintain regular and constructive engagement with DBT, and we are reassured that the UK has met its obligations under the agreement. While formal decisions now rest with the US administration, we will ensure that ALFED members remain updated in real time and are represented clearly in these negotiations. I appreciate the sector’s patience at this time and encourage continued feedback from members so we can reflect your concerns directly in our dialogue with government.”
ALFED will continue to provide members with direct updates as soon as any further information is confirmed. In the meantime, if members wish to discuss the implications of the EPD or the tariff position further, please contact the ALFED policy team directly.
