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UK steel industry warns Trump’s tariffs are a ‘sledgehammer to free trade’

The UK government has refused to criticise Donald Trump’s decision to impose 25 per cent tariffs on British steel exports, despite mounting concerns from industry leaders that the move will severely damage the sector.

Trump’s executive order, which removes exemptions for the UK and all other nations, will see all steel and aluminium imports into the US subject to tariffs from 12 March. Defending the policy, Trump declared from the Oval Office: “This is a big deal, the beginning of making America rich again. Our nation requires steel and aluminium to be made in America, not in foreign lands.”

Trade adviser Peter Navarro insisted the measures were essential to “secure our steel and aluminium industries as the backbone and pillar industries of America’s economic and national security”.

UK Steel director-general Gareth Stace condemned the decision, warning that Trump had “taken a sledgehammer to free trade” with potentially devastating consequences for the UK steel industry.

“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 said. He argued that UK steel posed “no threat” to US national security, adding that many American industries rely on high-quality British steel that is not available domestically.

Stace urged the UK government to act decisively, calling for “stronger action” and immediate negotiations to prevent further economic damage. “This is clearly a new era for global trade. We are confident the UK government recognises the impact on our industry and will explore all available options,” he said.

Despite industry concerns, No 10 refused to directly challenge the White House’s decision. When asked whether Trump was wrong to impose the tariffs, the Prime Minister’s official spokesman stated: “We will take a considered approach to this. We will engage with the US on the detail, but the government is clear we will work in our national interest.”

The UK government also refused to confirm whether it was asking the US to exclude Britain from the tariffs or if financial support would be introduced for the domestic steel sector. Officials instead pointed to existing measures, highlighting £2.5 billion in investment and plans to reduce electricity costs for steel firms through the British Industry Supercharger initiative.

Lord Peter Mandelson, the UK’s newly appointed ambassador to Washington, appeared to take a diplomatic approach, stating that Trump’s mandate “must be respected”.

The tariffs have also sparked a broader trade dispute, with European Commission president Ursula von der Leyen warning that “firm and proportionate countermeasures” will be taken in response. “The EU will act to safeguard its economic interests… tariffs are taxes – bad for business, worse for consumers,” she said.

Chris Southworth, secretary general of the International Chamber of Commerce UK, warned that the tariffs’ impact would stretch far beyond the steel industry, affecting key sectors such as aerospace, automotive manufacturing, and construction.

“The UK has an incredibly important role to play in the global response,” Southworth said, urging world leaders to “pull together and respond collectively”.

The US is the UK steel industry’s second-largest export market after the EU, accounting for five per cent of exports in 2023. UK Steel data shows that 166,433 tonnes were exported to the US in 2023, with 162,716 tonnes sent in 2024 so far, excluding December’s figures.

As the UK government treads carefully in its response, industry leaders fear that without decisive action, British steelmakers could suffer long-term damage from the latest escalation in global trade tensions.

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