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Trump’s steel tariffs put £2.7bn of UK exports at risk as British manufacturers brace for impact

by March 24, 2025
March 24, 2025
Trump’s steel tariffs put £2.7bn of UK exports at risk as British manufacturers brace for impact

British manufacturers are facing fresh uncertainty as Donald Trump’s sweeping new steel and aluminium tariffs threaten more than £2.7 billion ($3.43bn) worth of UK exports to the United States — a move that is already prompting order cancellations, price hikes, and long-term strategic questions for exporters.

The tariffs, reinstated by executive order as part of the US president’s campaign to revive American industry, apply not only to raw materials but also to a wide range of finished products that contain steel or aluminium — from aircraft components to luxury barbecue ovens.

A new analysis by the UK Trade Policy Observatory estimates that out of the $60.8 billion in UK goods exported to the US annually, around $3.43 billion will now be subject to the new tariffs. While $608 million of that relates to raw materials, the bulk — $2.85 billion — consists of manufactured goods incorporating steel, many of which had previously flown under the radar.

One company feeling the impact is Charlie Oven, a Nottinghamshire-based manufacturer of luxury charcoal ovens. Co-founder Neil Quick said the tariffs introduce real pricing uncertainty: “It’s a significant market for us. Do we pass the cost on to customers, or absorb it ourselves? It’s that lack of clarity that’s difficult.”

Although their high-end customers may tolerate a price rise — each oven retails for more than £5,000 — many other UK exporters operate in far more competitive markets.

Among the sectors most exposed is aerospace, with military aircraft and helicopter components alone accounting for $831 million in UK exports that now face tariffs — nearly a quarter of the total impact. Paul Smith of Coventry-based Aerocom Metals, which supplies materials for Airbus and Boeing, expects business to continue with elevated costs simply passed along. “Switching suppliers takes years in this industry,” he said.

However, for raw steel exporters, the effect is already more disruptive. Tata Steel UK’s chief executive Rajesh Nair told MPs that American customers had begun cancelling orders and demanding compensation, while British Steel’s commercial chief Allan Bell echoed similar concerns about market confidence.

The cumulative effect on UK exporters depends in part on how the tariffs are applied. Some manufacturers can choose whether to pay tariffs on the steel content alone or on the full product price. But for firms like Suffolk-based Claydon Drill — which sells advanced agricultural machinery — calculating the proportion of steel in each product is far from straightforward.

“We’ve been making a push into the US recently, but this might stall those plans,” said commercial director Spencer Claydon. “It’s not a huge market for us yet, but it was part of our strategy.”

While Trump has framed the measures as essential for US national security and industrial revival, many analysts believe the wider scope of the tariffs is about creating negotiating leverage. “You can argue that anything with steel in it undermines US industry — even if it’s a barbecue oven,” said Matthew Oresman, managing partner at law firm Pillsbury.

Ironically, similar tariffs introduced during Trump’s first term backfired. A study by the US Federal Reserve found that while they offered minor protection to domestic producers, they ultimately caused a 1 percentage-point drag on the US economy — due to lost manufacturing jobs, higher input costs and retaliatory tariffs.

That broader impact may be even greater this time. “We’re looking at around $150 billion in US consumer goods being affected, far more than last time,” said Laura Cooper, global investment strategist at asset manager Nuveen. “This could seriously dent business confidence and industrial output.”

Back in the UK, manufacturers like Charlie Oven are standing firm — for now. “We could move production elsewhere, but we believe in making our product in Britain,” said Tara Quick. “It’s part of our identity. We just hope we can ride out the storm.”

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Trump’s steel tariffs put £2.7bn of UK exports at risk as British manufacturers brace for impact

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