Britain’s steelmakers are bracing for a sharp escalation in trade tensions after the United States signalled it will double import tariffs on UK steel to 50% from Wednesday — despite a recent transatlantic deal to remove such duties.
The expected hike replaces the 25% tariff President Trump imposed on foreign steel earlier this year, which officially came into force on 12 March. Although the Prime Minister announced on 8 May that a breakthrough deal had been reached with the US to eliminate the steel levy, that agreement has yet to be finalised — leaving UK steel exports in limbo.
UK Steel, the industry’s trade body, warned that unless urgent clarity is provided, all UK steelmakers exporting to the US could be hit by the punishing new tax within days. The US is Britain’s second-largest steel export market, worth approximately £400 million annually and accounting for 9% of total exports by value.
Gareth Stace, Director-General of UK Steel, described the move as “yet another body blow” to an industry already struggling with global price volatility and rising production costs.
“UK steel companies are this morning fearful that orders will now be cancelled, some of which are likely being shipped across the Atlantic as we speak,” he said.
Stace warned that the “doubling of tariffs plunges the UK steel industry further into confusion”, noting that the long-promised resolution between the two governments has yet to materialise. “Uncertainty remains as to whether and when our second-biggest export market will be open for business or is being firmly shut in our faces.”
The 50% tariff forms part of a wider escalation in US protectionism under President Trump, who has imposed sweeping duties on steel, aluminium and other imports from countries running trade surpluses with America. Although a temporary 90-day pause on reciprocal tariffs was announced earlier this month, the UK appears to have fallen into a regulatory gap as officials scramble to implement the terms of the UK-US accord.
Stace urged the UK government to act decisively and finalise the deal before the new tariffs take hold.
“UK Steel is now pressing our government to eliminate UK steel import tax and for it to come into effect urgently. UK steelmakers should not have to shell out for this new steep hike in US steel tariffs. All we want is to continue producing the steel our US customers value so highly.”
Industry leaders fear that unless the agreement is swiftly ratified, UK producers could face cancelled contracts, lost market share and long-term damage to their trade relationships with US buyers.
The Department for Business and Trade has not yet commented on the latest developments.
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UK steel industry faces fresh crisis as US tariff jumps to 50%