UK steel and aluminium industries braced for Trump tariffs

The British steel and aluminium industries are braced for the impact of Donald Trump’s tariffs on US imports which are due to come into effect on Wednesday.

The UK Government is unlikely to immediately retaliate to the 25% import tax, with officials stressing the need for a “cool-headed approach” after last-ditch efforts to persuade the US President to spare British industry from his global tariffs appeared to have failed.

The issue was discussed in a call between the Prime Minister and Mr Trump on Monday and ministers and officials have been in frequent talks with their US counterparts since the measures were first proposed in February.

The Prime Minister’s official spokesman said: “We’re obviously engaging closely with the US and we remain prepared to defend the UK’s national interest where it’s right to do so.

“The Government’s committed £2.5 billion of investment to rebuild the UK steel industry and support communities now and for generations to come.”

The Government estimates around 5% of UK steel exports and 6% of aluminium exports by volume go to the US, although the aluminium industry body said the US market accounted for 10% of exports – valued at £225 million.

Steelmakers have warned the tariffs will have “huge ramifications” for the industry in the UK.

The aluminium industry body warned the looming import taxes were already having an effect.

“The sharp rise in US premiums has created new incentives for scrap exports, raising the risk of significant domestic scrap leakage. This not only weakens the UK’s recycling capacity but risks undermining our sustainability objectives and circular economy targets.

“Additionally, the uncertainty around potential trade diversion is placing considerable pressure on UK producers, especially as semi-finished goods may flood the UK market at lower costs.

“This could severely destabilise the competitiveness of UK aluminium manufacturers, who are already contending with high energy costs and complex regulatory challenges.”

Mr Trump has previously threatened to impose tariffs on other countries and then relented, but he remains wedded to the overall idea of making the US rich through taxing imports.

In a sign of the American leader’s unpredictable approach, on the eve of the tariffs coming into force he doubled the rate for Canadian imports from 25% to 50%.

The measures are due to come in after midnight in the US (around 4am GMT).

Downing Street said there were “multiple engagements at multiple levels” with the US administration as the Government attempted to spare UK exporters from the tariffs.