Steel tariffs ‘couldn’t come at a worse time’ for UK industry
UK industry heavyweights have branded Donald Trump’s tariffs on steel and aluminium imports a “difficult day for transatlantic trade” that will put “considerable pressure” on the UK’s metals sector.
Tariffs on the two widely-used commodities came into force on Wednesday morning, meaning all UK steel and aluminium exports to the US will now be subject to a 25 per cent levy.
The duties were first announced last month, and bosses from the UK’s steel and trade sectors lamented the fact the UK was unable to negotiate an exemption.
William Bain, head of trade policy at the British Chambers of Commerce (BCC) told CityAM that the tariffs represented a “lose-lose scenario” for British and American firms.
“The introduction of tariffs will be a difficult day for transatlantic trade and will plunge businesses, in both the US and UK, into a new age of uncertainty,” he said.
Meanwhile leading figures from Britain’s metals sector branded the levies “hugely disappointing” and warned they will serve only to further hamper the UK’s struggling steel industry.
Gareth Stace, director general of UK Steel, said: “Our steel sector is not a threat to the US, but a partner to key customers.”
“These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape,” he added.
Nadine Bloxome, chief executive of the Aluminium Federation, told CityAM that her sector had already been forced to deal with preemptive shifts in trade patterns.
Semi-finished goods could soon “flood the UK market” undermining domestic producers already contending with high energy costs and burdensome regulation, she said.
On Tuesday, Keir Starmer pledged not to respond with immediate counter-tariffs, in a departure from the approach adopted by the European Union, Canada and Mexico.
UK to take “cool-headed” approach to tariffs
Downing Street’s official spokesman said the the government was engaging “closely with the US administration to make the case for the UK to be exempted from proposed tariffs”.
He added: “When it comes to the UK steel industry we remain prepared to defend the UK’s national interest where it’s right to do so. But we will continue to take a cool-headed approach to any speculation around tariffs.”
The US accounts for just five per cent of UK steel exports, and six per cent of aluminium exports, according to the Office for National Statistics, and steel trade to the US is worth over £400m.
Business secretary Jonathan Reynolds had previously warned that steel tariffs would damage both the UK and US, and Starmer’s decision not to engage in a tit-for-tat response sparked a warning from UK Steel’s Stace.
He said Britain’s steel industry could be left especially vulnerable to US and EU exporters flooding the UK, worsening its trade deficit.