Global Partners Lose Billions as U.S. Stalls on Tariff Cuts

- Delayed U.S. tariff relief frustrates key international trade partners - Industries in the UK, EU, Japan, and South Korea face severe financial strain Key trade partners of the United States are voicing their dissatisfaction over delayed tariff relief on steel, aluminum, and automotive exports. These partners include the United Kingdom, the European Union, Japan, and South Korea. Despite prior agreements to reduce or cap tariffs, the U.S. has kept duties as high as 50% on steel and 25% on automobiles, causing significant economic disruption in these regions. On August 18, 2025, Cryptopolitan reported that several countries, including the UK and EU members, are grappling with high tariff rates, citing the U.S. government's unfulfilled commitments to ease these restrictions. In a handshake agreement, European Commission President Ursula von der Leyen and U.S. President Donald Trump promised a 15% tariff cap on steel and auto exports, but the U.S. has not yet implemented it. The uncertainty and lack of progress have heavily impacted German automakers, who report billions in losses. The delays also affect the UK. Prime Minister Keir Starmer had previously welcomed an agreement to eliminate the 25% duty on British steel. However, three months after the deal, the promised relief has not materialized, and U.S. orders for British steel have plummeted. This situation raises fears that smaller British steel firms may not survive. Additionally, U.S. "melt and pour" rules create compliance challenges, as they require companies to manufacture steel entirely in the UK to qualify for tariff benefits. For example, Tata Steel UK will not have the required facilities in place until 2027. Japan and South Korea also report financial strain from the unimplemented relief after signing agreements in July to lower tariffs. The continued 25% tariff on auto exports is a significant burden; according to Japan’s top trade negotiator, Ryosei Akazawa, Japanese automakers are losing up to $680,000 per hour under the current structure. Meanwhile, South Korean car manufacturers, including Hyundai and Kia, face up to $5 billion in projected additional costs by the end of this year. Adding to these tensions, Washington recently imposed tariffs on nearly 300 additional steel and aluminum products and expanded duties on Chinese imports, a development that intensifies criticism of U.S. trade policies. Figures such as former EU trade commissioner Cecilia Malmström warn against prolonged negotiations and delays in delivering promised tariff relief.