President Trump’s proposed 25% tariffs on steel and aluminium imports into the US on top of existing duties would be a ‘devastating blow’ to the UK industry, according to the UK Steel Director General.
Gareth Stace said the US is the UK’s second largest export market after the EU and at a time of shrinking demand and high costs, rising protectionism will stifle exports and damage over £400m-worth of the steel sector’s contribution to the UK’s balance of trade.
“It is deeply disappointing if President Trump sees the need to target UK steel, given our relatively small production volumes compared to major steel nations,” he said.
The UK supplies the US with products for defence, aerospace, stainless, and other critical sectors, exporting around 200,000 tonnes annually.
It is currently partially shielded from the effects of trade diversion by existing Steel Safeguard measures, but these expire in June 2026. The UK Carbon Border Adjustment Mechanism (CBAM), a tax measure on high-emission steel imports, will not come into force until January 2027.
“At the same time, the introduction of further US tariffs will inevitably divert global trade flows, with excess steel potentially redirected to the UK market,” added Stace.
“This reinforces the urgent need for watertight UK trade measures in 2026 to prevent surges in imports following the UK’s steel safeguards expiry. Accelerating the UK’s CBAM to 2026 would provide an additional layer of protection against unfairly priced steel. The UK Government must act decisively to shield our domestic industry from the fallout of rising global protectionism.”
It remains unclear whether the US will cancel all or some of the previous arrangements on existing Section 232 (25% tariffs on steel and 10% tariffs on aluminium).
Certain countries like Canada and Mexico were granted exemptions when Section 232 tariffs were first imposed in 2018. Later the UK, the EU and Japan negotiated a system of tariff-rate quotas.
Until now, customers in the US could also apply for product specific exemptions to import products not made in the US, tariff-free.
Any changes to current agreements between the UK and the US could have a hugely damaging impact on the UK steel sector, both directly and via trade diversion from countries that may be barred from exporting to the US.
Current global steel overcapacity means that when the US imposes tariffs on multiple countries, excess steel is forced into other markets, including the UK. Without strong trade shields, this risks a surge of unfairly priced imports, undermining UK steelmakers, distorting competition, and threatening the industry’s viability.
Last October, British Steel launched a carbon capture trial at its Scunthorpe plant, aiming to lower its carbon footprint through new technology.
In partnership with the University of Sheffield, the trial uses a mobile carbon capture pilot plant installed at British Steel’s Central Power Station.
This pilot, developed by the university, is designed to capture carbon dioxide (CO2) from the station’s boiler flue gases, representing a step forward in industrial decarbonisation.
Read more: British Steel pilots carbon capture at Scunthorpe to reduce CO2 emissions
President Donald Trump has announced a new energy partnership with Japan that will see liquefied natural gas (LNG) exports from the $44bn Alaska LNG project.
The news was announced during a joint press conference attended by President Trump and Japanese Prime Minister Shigeru Ishiba, where Trump referenced a “joint venture” between the US and Japan.
Read more: Trump announces US-Japan energy deal for Alaska LNG exports
