The UK steel and aluminium sectors face fresh uncertainty as the US imposes a 25% tariff on British metal imports. Industry leaders warn the move could further strain an already pressured market, while the UK government stresses the need for diplomacy.
According to The Independent, the new tariffs, implemented by the administration of Donald Trump, have drawn criticism from trade bodies and business leaders, who argue they come at a challenging time for British manufacturers.
The UK government has been engaging with US officials in an effort to secure exemptions, but negotiations appear to have fallen short. With energy costs rising and global markets in flux, the UK metal industry now faces additional hurdles in maintaining its competitiveness.
British Steel Industry Warns of Economic Strain
The introduction of US tariffs on UK steel exports has sparked concern among industry representatives, who stress that the additional costs will impact both production and global trade.
According to Gareth Stace, director general of UK Steel, the tariffs could not come at a worse time. He argues that British steel is not a threat to US manufacturers, but rather a key partner in global supply chains.
“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,” Stace stated.
He further warned that high energy costs and subdued domestic demand have already placed UK steelmakers in a difficult position, making the new trade barriers particularly damaging.
Beyond US tariffs, the European Union is also considering trade restrictions that could add further challenges for UK steel exporters. Stace has urged the UK government to continue lobbying for exemptions and to reinforce trade protections to shield domestic manufacturers from economic harm.
Aluminium Sector Faces Disruption in Trade and Recycling
The UK aluminium industry has also raised concerns over the effects of US tariffs, highlighting potential disruptions to global supply chains and domestic recycling efforts. Nadine Bloxsome, chief executive of the Aluminium Federation, noted that the sector was already feeling the impact, even before the tariffs were fully in place.
“The sharp rise in US premiums has created new incentives for scrap exports, raising the risk of significant domestic scrap leakage,” she said. This shift could weaken the UK’s recycling infrastructure, making it harder to meet sustainability and circular economy targets.
Additionally, the possibility of low-cost aluminium products flooding the UK market has raised fears of a decline in competitiveness for British manufacturers. With high production costs and regulatory challenges, the industry now faces further economic strain.
The UK government has pledged £2.5 billion to support the domestic steel industry, with officials stating they remain prepared to defend national interests where necessary. However, the future of UK metal exports to the US remains uncertain as trade tensions persist.
