UK Steel reacts strongly to Trump's tariffs

The trade body highlights that the UK's 'high-quality products serve key US industries, many of which cannot source these domestically'.

UK Steel's comments come as US President Donald Trump imposes a 25% tax on all steel and aluminium entering the US without exemption. 

This now cancels out previous quota arrangements and exemptions, including for the UK and EU.

Product-specific exemptions for steel not made in the US, have also been scrapped. Tariffs now extend to derivative products, with only steel ‘melted and poured’ in the US but processed elsewhere remaining exempt.

The new rules take effect on 12 March. 

UK Steel comments, 'The Presidential proclamation claims steel imports from Australia, the EU, Japan, and the UK rose from 18.6% in 2020 to 20.7% in 2024, proving quotas ineffective. However, this ignores 2020’s historically low demand during the pandemic – and UK steel exports to the US were actually 14% lower in 2024 than in 2018 when tariffs were first introduced. 

'The proclamation also criticises trading partners for not tackling non-market excess capacity, mainly from China, and lacking cooperation on trade remedies and steel monitoring. This could open the door for negotiations, with reports suggesting Australia may already be in line for an exemption.'

UK Steel Director General, Gareth Stace, adds, 'President Trump has taken a sledgehammer to free trade with huge ramifications for the steel sector in the UK and across the world. This will not only hinder UK exports to the US, but it will also have hugely distortive effects on international trade flows, adding further import pressure to our own market.

'This is a moment where our countries should work together to tackle global steel overproduction, not to be at loggerheads.

'We are confident the UK Government recognises the impact on our industry and will explore all available options. Both immediate responses, such as negotiating a solution and long-term measures to prevent harmful trade diversion into the UK market, are options.'

In related news, Heathrow Airport has signed up to the UK Steel Charter as it gears up for expansion. The Charter is a commitment to changing procurement processes to include more UK-made steel.