UK steelmakers have warned of severe disruptions to exports and potential order cancellations following US President Donald Trump’s decision to double import tariffs on British steel and aluminium from 25% to 50%, a move described by industry leaders as “yet another body blow” to the struggling sector.
The new tariffs, set to take effect on Wednesday, come despite a UK-US trade deal announced earlier this month that promised to eliminate such duties. However, the 25% levy introduced earlier this year has remained in place as the details of the agreement are still being finalised.
Trade group UK Steel expressed deep concern over the sudden escalation, warning that uncertainty around shipments already en route to the United States could result in major financial losses.
“UK steel companies are this morning fearful that orders will now be cancelled, some of which are likely being shipped across the Atlantic as we speak,” said Gareth Stace, Director General of UK Steel.
“The deal that Prime Minister Sir Keir Starmer and President Donald Trump struck just a few short weeks ago is yet to be finalised, so this doubling of tariffs plunges the UK steel industry further into confusion.”
Stace called on the UK government to urgently complete negotiations with the US and ensure the removal of tariffs on British steel exports. “UK steelmakers should not have to shell out for this new steep hike. All we want is to continue producing the steel our US customers value so highly,” he added.
The UK exports around £700 million worth of steel and aluminium to the US each year — a relatively modest figure — but the US remains one of the industry’s most important markets, particularly for specialised steel used in sectors like defence and aerospace.
A UK government spokesperson said, “The UK was the first country to secure a trade deal with the US earlier this month, and we remain committed to protecting British business and jobs across key sectors, including steel.”
Business Secretary Jonathan Reynolds is expected to meet with his US counterpart, Jamieson Greer, at an OECD meeting in Paris next week to negotiate a clear timeline for implementing tariff exemptions.
While both sides have expressed a commitment to tariff-free trade, the abrupt decision to raise duties has left UK steelmakers uncertain about the future. Until the deal is finalised, trade with the US is set to become more costly and complicated — with no clear end in sight.
