President Trump’s 25% tariffs on steel and steel derivative products have come into force today, delivering a significant blow to British steelmakers and their US customers.
With no exemptions granted to the UK or other trading partners, industry leaders warn of a damaging ripple effect as diverted steel trade enters markets like Britain. Further reciprocal tariffs from the US are expected on 2 April.
The United States is the second-largest export destination for UK steel — particularly for high-value, specialist products used in defence, oil and gas, construction equipment and packaging. These tariffs hit at an already difficult time for domestic producers, who continue to grapple with global overcapacity, sky-high energy costs, and depressed demand at home.
Trade diversion poses an additional threat. Although safeguards were introduced to protect UK steel from dumping, they have been gradually liberalised and quotas are now 22% larger than in 2018, despite UK steel demand having fallen by 16% in the same period. Many argue that these measures no longer offer adequate protection.
The tariffs will remain in place until June 2026, and industry figures are urging the government to tighten existing measures and make clear plans for a new system of safeguards well before the current regime expires. Meanwhile, the European Union’s Steel and Metals Action Plan, due to be presented on 19 March, could add further pressure on UK exports and intensify the challenges around trade defences.
Gareth Stace, Director General of UK Steel, expressed disappointment at the White House decision: “President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the US, but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade. 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 called on the UK government to step up negotiations with Washington to secure an exemption while also tightening domestic trade defences:
“We greatly appreciate all the efforts that have been made so far and will continue working closely with our Government to secure the best possible outcome.”