British steelmakers are warning of severe disruption to exports and rising trade tensions as the United States prepares to double import tariffs on UK steel to 50% starting Wednesday, despite earlier announcements of a deal to eliminate such duties.
The new levy replaces the 25% tariff introduced by former US President Donald Trump, which came into force in March. Although Prime Minister Rishi Sunak announced a breakthrough agreement with Washington on 8 May to remove the tariff, that deal has not yet been finalised, leaving UK exporters in a state of uncertainty.
UK Steel, the trade body representing the sector, has called on the British government to urgently finalise the agreement and shield the £400 million worth of annual steel exports to the US from the looming tariff hike. The US is the UK’s second-largest market for steel, accounting for around 9% of total steel exports by value.
Gareth Stace, Director-General of UK Steel, described the expected move by the US as “yet another body blow” to an industry already facing global price volatility and soaring energy costs.
“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,” Stace said. “The doubling of tariffs plunges the UK steel industry further into confusion.”
Stace also expressed frustration over the delay in implementing the trade deal that had been touted as a major breakthrough earlier this month. “Uncertainty remains as to whether and when our second-biggest export market will be open for business or is being firmly shut in our faces,” he added.
The 50% tariff is part of a broader wave of US protectionist measures under President Trump, targeting countries with trade surpluses with the US. While Washington recently announced a temporary 90-day suspension on reciprocal tariffs, the UK appears to have been caught in a regulatory limbo as officials on both sides struggle to finalise the terms of their accord.
Industry leaders fear that if no action is taken in the coming days, UK steel producers will face cancelled contracts, shrinking market share, and potentially long-term damage to their trade relationships in the US.
The Department for Business and Trade has yet to issue a statement on the developments. Meanwhile, UK Steel is urging immediate action, warning that time is running out.
