The UK steel industry has decried President Trump’s decision to double steel and aluminum import tariffs to 50% as a significant setback.
UK Steel, the industry’s trade group, anticipates order delays and cancellations, particularly concerning shipments already en route from the UK to the US.
The new 50% tariff, effective Wednesday, supersedes the previously announced 25% tariff.
A UK government spokesperson confirmed ongoing engagement with US authorities to clarify the implications for the UK steel sector.
Despite a May 8th agreement to eliminate tariffs on UK steel as part of a broader trade deal, the 25% tariff remains in place pending finalization of the agreement’s details.
Gareth Stace, director general of UK Steel, stated, “The recently agreed deal between Prime Minister Starmer and President Trump remains unfinalized, creating further uncertainty and significantly impacting UK steelmakers. This tariff increase is another serious blow during already challenging times. Companies fear order cancellations, some with shipments currently underway.”
Mr. Stace emphasized the need for urgent government action to finalize the tariff elimination agreement and ensure its prompt implementation.
“UK steelmakers should not bear the burden of these increased US tariffs. Our sole aim is to continue supplying the high-quality steel valued by our American customers,” he added.
A UK government spokesperson reiterated the government’s commitment to safeguarding British businesses and jobs, including those within the steel industry, following the UK’s achievement of being the first nation to secure a trade deal with the US.
According to a Guardian report, UK Business Secretary Jonathan Reynolds will meet his US counterpart next week at an OECD meeting in Paris to negotiate a timeline for exempting the UK from these tariffs.
While UK steel and aluminum exports to the US are relatively modest at approximately £700 million annually, the US market remains crucial for the UK industry.
Despite the seemingly straightforward nature of the UK’s situation, business with the US is poised to become more complex and costly until the details of the UK-US deal are finalized. The duration of this increased complexity remains uncertain.
The specialized steel exported by the UK, often used in applications such as nuclear submarines, makes it challenging for the US to find alternative sources.
Tariff-free trade offers mutual benefits. However, this situation underscores the unpredictable nature of dealings with the Trump administration.
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