Jobs Warning After Trump Tariffs Hit UK Steel and Aluminium Exports
The UK government said President Donald Trump’s actions were disappointing but did not retaliate, while Brussels threatened a trade war with Washington.
Jobs could be at risk in the beleaguered British steel industry after President Donald Trump imposed a 25 percent tax on U.S. imports.
Business Secretary Jonathan Reynolds said the global tariffs on steel and aluminium imports were “disappointing” but the UK was not retaliating, unlike the European Union which immediately responded with countermeasures on U.S. goods.
Ministers insisted they were taking a pragmatic approach and avoiding knee-jerk reactions after last-ditch efforts to persuade the U.S. president to grant an exemption for the UK failed.
The government said around 5 percent of UK steel exports and 6 percent of aluminium exports by volume go to the United States, although trade bodies for both industries claim that is an underestimate of the scale of shipments across the Atlantic.
The move is the latest blow to a steel industry which has seen thousands of job losses in recent years owing to issues including global competition, high energy costs, and the shift to cleaner technologies.
The tariffs came into effect at 4 a.m. GMT, and raise a flat duty on steel and aluminium entering America to 25 percent.
Related Stories
Reynolds said: “It’s disappointing the U.S. has today imposed global tariffs on steel and aluminium.
“We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the U.S. to eliminate additional tariffs and to benefit UK businesses and our economy.”
Brussels said countermeasures to the tariffs, which would affect around 26 billion euros (around £22 billion) of EU exports, will be introduced in April “to defend European interests.”
The targeted measures include not only steel and aluminium but motorcycles, bourbon, peanut butter, and jeans, with tariffs also hitting products which are important in key Republican-leaning states.
The United States is the steel industry’s second largest export market behind the European Union.
Trade body UK Steel said that in 2024 the UK exported 180,000 tonnes of semi-finished and finished steel to the United States, worth £370 million, some 7 percent of the UK’s total steel exports by volume and 9 percent by value.
Exports include specialised steel used by the U.S. navy on its submarines, with the government arguing that the tariffs will push up costs for American taxpayers, in an attempt to persuade Trump to change course.
The aluminium industry said the U.S. market accounts for 10 percent of exports, valued at £225 million.
Secretary of State for Business and Trade Jonathan Reynolds walks outside Number 10 Downing Street in London on July 9, 2024. Chris J. Ratcliffe/Reuters
Gareth Stace, director-general of UK Steel, branded the Trump administration’s move “hugely disappointing.”
He added: “President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the U.S. 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.
“What’s more, the EU is also pushing ahead with trade restrictive action that will amplify the impact of U.S. tariffs.”
Nadine Bloxsome, chief executive of trade body the Aluminium Federation, said: “The enforcement of U.S. tariffs today is a critical moment for the UK aluminium industry.
“While the direct impacts are already being felt through reduced U.S. orders and scrap export pressures, the additional risk of trade diversion due to EU countermeasures creates an even more serious challenge.
“We are concerned that without proactive safeguarding, the UK could face an influx of low-cost imports, threatening the competitiveness and stability of our domestic market.”
Trade unions in the steel industry warned jobs could be at risk as a result of the tariffs.
Community union Assistant General Secretary Alasdair McDiarmid said: “These U.S. tariffs on UK steel exports are hugely damaging and they threaten jobs.
“For the U.S. it’s also self-defeating, as the UK is a leading supplier of specialist steel products required by their defence and aerospace sectors.”
Unite General Secretary Sharon Graham said: “Our government must act decisively to protect the steel industry and its workers following the announcement of U.S. tariffs.
“This is a matter of national security. Steel should be immediately designated as critical national infrastructure to properly protect it.”
