The embattled British steel industry faces fresh uncertainty following US President Donald Trump’s decision to impose a 25% tariff on steel and aluminium imports into the United States.
Business Secretary Jonathan Reynolds described the move as “disappointing”, but emphasised that the UK would not retaliate, unlike the European Union, which has swiftly introduced countermeasures on US goods.
Despite last-minute diplomatic efforts to secure an exemption for British exports, UK ministers have opted for a pragmatic response, resisting calls for immediate retaliatory action.
The government highlighted that approximately 5% of British steel exports and 6% of aluminium exports are destined for the US. However, trade bodies argue that these figures underestimate the true scale of transatlantic shipments.
This latest setback compounds ongoing challenges for the UK steel sector, which has suffered thousands of job losses in recent years due to global competition, soaring energy costs, and the transition towards greener technologies.
Tariffs to Impact UK Steel and Aluminium Exports
The new tariffs, which took effect at 4am GMT, impose a flat 25% duty on all steel and aluminium entering the US.
Commenting on the situation, Mr Reynolds stated: “It is disappointing that the US has today imposed global tariffs on steel and aluminium.”
“We are committed to a pragmatic approach and are rapidly negotiating a broader economic agreement with the US to remove these additional tariffs, ensuring benefits for UK businesses and the wider economy.”
EU Retaliates with Billions in Countermeasures
In response, Brussels has announced tariffs on US goods, affecting approximately €26 billion (£22 billion) worth of exports. These measures, set to be implemented in April, are designed to protect European interests.
The EU’s targeted countermeasures extend beyond metals, impacting products such as motorcycles, bourbon, peanut butter, and jeans—many of which are linked to Republican-leaning states in the US.
Steel Industry Fears Further Damage
The United States is the UK steel industry’s second-largest export market, trailing only the European Union.
According to UK Steel, Britain exported 180,000 tonnes of semi-finished and finished steel to the US in 2024, valued at approximately £370 million. This equates to 7% of the UK’s total steel exports by volume and 9% by value.
Industry experts warn that these tariffs could jeopardise British jobs and economic growth, adding further pressure to a sector already grappling with rising costs and international competition.
With negotiations ongoing, the government faces mounting pressure to secure a resolution that safeguards British manufacturing and jobs.
