Trump’s hardline tariffs on steel ‘damaging’ for UK suppliers says trade body

Chip Somodevilla/Shutterstock

DONALD TRUMP’s tariffs on steel and aluminium imports “will be damaging” for UK suppliers and US customers, according to trade association UK Steel.

The 25% tariffs took effect today and will impact the US’s trade relationships with all its partners, including the UK, Canada, Mexico, Europe, and Australia.

Potential tariffs on major steel exporters have been under consideration since Trump returned to the White House, reiterating his campaign promise to boost domestic steel and aluminium production.

The US is the third largest importer of UK steel – behind Ireland and the Netherlands – and was worth £388.1m to the UK economy in 2023.

UK Steel says that the tariffs “could not come at a worse time” for the industry as it battles oversupply and overcapacity issues arising from China.

Gareth Stace, UK Steel director, said: “President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the US, but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade.”

UK speciality steels

UK Steel says that speciality companies are set to be impacted the most from the tariffs as business could slow if US customers decide to go elsewhere.

The UK is known for its speciality steel products in industries like construction, defence, and oil and gas. These include cast iron bar and Suzuki Garphyttan (SG) wire, which is manufactured in Leeds.

Jonathan Reynolds, the business and trade secretary, said that the government is working to engage with the US on a trade deal that will “press the case” for UK business interests.

He added: “We will keep all options on the table and won’t hesitate to respond in the national interest.”

British Steel has also said that they are in discussions with the UK government and its US customers and are “hoping to come to an amicable solution”.

A spokesperson for British Steel said: “This is an especially challenging time for the UK steel industry, and these tariffs apply yet even more pressure. They are a barrier to trade and will also cause cheap steel previously destined for America to flood the UK market.”

Global oversupply

The global steel industry has been volatile in recent years, with high exports from China driving down steel prices, posing challenges for UK suppliers.

Taking advantage of cheap labour and large government subsidies, China exported 110m t of steel last year, and accounts for 73% of global steel production as of 2023.

Though Trump’s tariffs seek to bar cheap imports coming in from China, other suppliers around the world will also pay the price.

Anthony Albanese, the prime minister of Australia, has called the tariffs concerning but has said that his country has no plans to launch counter tariffs, continuing to build a case for exemption.

The EU, Canada, and China, in contrast, are fighting back, with the EU planning to impose counter tariffs on US$28.3bn worth of US goods.