Industry association UK Steel says its home country should work with the US to tackle overproduction, despite the UK not being granted an exemption from the latest additional 25% US tariffs on steel imports.
In a statement seen by Kallanish, UK Steel says the newly announced tariffs cancel out previous quota arrangements and exemptions. 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 notes Trump has cited rising global excess capacity, which is forecast to hit 630 million tonnes in 2026, and concerns over steel transhipment from China. These blanket measures aim to block such routes.
The association however rejects Trump’s claims that US imports from the UK rose, along with other countries, rendering quotas ineffective, noting UK steel exports to the US were actually 14% lower in 2024 than in 2018 when tariffs were first introduced.
The UK exported 300,000 tonnes/year of steel to the US in 2017 before the 2018 Section 232 tariffs. Exports averaged 200,000 t/y over 2018-2021. The UK and the US agreed a system of tariff-rate quotas in 2022 with exports recovering to 235,000t. In 2023, exports to the US dipped to 165,000t, UK Steel notes.
Trump has criticised trading partners for not tackling non-market excess capacity, mainly from China, and lacking cooperation on trade remedies and steel monitoring. UK Steel says 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 says: “UK steel poses no threat to US national security. Our high-quality products serve key US industries, many of which cannot source these domestically. This is a moment where our countries should work together to tackle global steel overproduction, not to be at loggerheads. The UK stands with the US on tackling global excess steel capacity and unfair trade, and our industry urges the UK Government to take stronger action on these issues.”
“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,” Stace concludes.
Carrie Bone UK
