The United States has officially implemented a 25% tariff on steel and steel derivative products, dealing a significant blow to British steelmakers and their American customers. With no exemptions granted to the UK or other key trading partners, industry leaders are warning of severe economic consequences, including trade disruption and increased competition from diverted steel entering UK and European markets.
The US is the second-largest export destination for British steel, particularly for high-value specialist products used in defense, oil and gas, construction equipment, and packaging. The newly imposed tariffs add further pressure to an already struggling UK steel sector, which is grappling with global overcapacity, high energy costs, and weak domestic demand.
A major concern for UK producers is the impact of trade diversion. While safeguards were initially put in place to prevent the UK market from being flooded with surplus steel from other countries, those measures have been gradually loosened. Quotas for steel imports into the UK have increased by 22% since 2018, even as domestic steel demand has declined by 16% in the same period. Industry experts argue that these safeguards are no longer sufficient to protect UK manufacturers.
The tariffs are set to remain in effect until June 2026. In response, steel industry leaders are urging the UK government to strengthen its trade defense policies and begin planning for a new system of safeguards before the current framework expires. Additionally, the upcoming European Union Steel and Metals Action Plan, expected to be unveiled on March 19, could create further trade complications for British steel exports.
Gareth Stace, Director General of UK Steel, condemned the White House’s decision, emphasizing the long-standing partnership between the two nations.
“President Trump must surely recognize that the UK is an ally, not a foe. Our steel sector is not a threat to the US but a key partner, working together to address global overcapacity and tackle unfair trade. These tariffs couldn’t come at a worse time for the UK steel industry as we struggle with soaring energy costs and subdued domestic demand,” Stace said.
He also called on the UK government to redouble its efforts in negotiating an exemption with Washington and to reinforce domestic protections against unfair competition.
“We greatly appreciate the work done so far and will continue working closely with the government to secure the best possible outcome for our steel sector,” he added.
With reciprocal US tariffs on British goods expected to follow in early April, the impact on trade relations remains uncertain. However, UK steel producers are bracing for a challenging period ahead as they navigate the fallout from the escalating trade tensions.
