Ministers had hoped to finalise deal this week that would reduce president’s steel tariffs to zero

A long-coveted deal to slash US steel and aluminium tariffs to zero has been shelved on the eve of Donald Trump’s state visit to Britain, the Guardian has learned.

Ministers were poised to finalise a deal this week that would have reduced Trump’s tariffs on British steel to zero, according to government officials.

But that deal has been put on ice hours before the US president’s arrival in the UK, in what steel industry figures privately described as a major blow.

A government source said the deal would have secured 0% tariffs on just a small quota of British steel exports, prolonging uncertainty for the industry.