Industry association UK Steel says it is “deeply disappointing” that US President Donald Trump is targeting the UK with an additional 25% tariff on steel imports, Kallanish notes from its statement.
It remains unclear whether this will cancel all or some of the previous arrangements on existing Section 232 measures, the association adds. Until now, customers in the US could also apply for product-specific exemptions for tariff-free imports of products not made in the US.
UK Steel director general Gareth Stace says: “It is deeply disappointing if President Trump sees the need to target UK steel, given our relatively small production volumes compared to major steel nations. The UK produces world-leading steel, supplying the US with high-quality products for defence, aerospace, stainless, and other critical sectors, materials that simply cannot be replicated elsewhere.”
The association also notes fears of excess steel capacity being re-directed to other markets such as the UK. Without strong trade shields, unfairly priced imports could undermine domestic steelmakers and threaten the long-term viability of the industry, it adds.
“The imposition of US tariffs on UK steel would be a devastating blow to our industry. The US is our second largest export market after the EU. At a time of shrinking demand and high costs, rising protectionism globally, particularly in the US, will stifle our exports and damage over £400 million [$496m] worth of the steel sector’s contribution to the UK’s balance of trade,” Stace says.
“At the same time, the introduction of further US tariffs will inevitably divert global trade flows, with excess steel potentially redirected to the UK market. This reinforces the urgent need for watertight UK trade measures in 2026 to prevent surges in imports following the UK’s steel safeguards expiry. Accelerating the UK’s CBAM to 2026 would provide an additional layer of protection against unfairly priced steel. The UK Government must act decisively to shield our domestic industry from the fallout of rising global protectionism,” Stace concludes.
Carrie Bone UK
