Britain’s steel sector is facing renewed turmoil as the United States prepares to raise tariffs on UK steel imports from 25% to 50% starting Wednesday, despite a recent announcement of a deal intended to eliminate such duties.
The tariff increase, replacing measures introduced by President Donald Trump earlier this year, comes amid delays in finalizing the UK-U.S. agreement, announced on 8 May by the UK Prime Minister. With the deal still pending implementation, British steel exports to the U.S., the UK’s second-largest steel market, remain vulnerable.
UK Steel, the industry’s trade body, has warned that the sudden escalation in tariffs could result in cancelled orders and significant financial losses for exporters. The U.S. market accounts for around £400 million annually, or 9% of UK steel export value.
Gareth Stace, Director-General of UK Steel, called the move “yet another body blow” to an industry already under pressure from global price fluctuations and high 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 criticized the ongoing uncertainty, noting that the failure to finalize the deal leaves producers unsure whether their access to the U.S. market is secure. “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 is part of a broader U.S. protectionist strategy under Trump, targeting imports from nations with trade surpluses. Although a temporary 90-day pause on retaliatory tariffs was announced earlier this month, the UK appears caught in a regulatory limbo.
UK Steel is urging the UK government to finalize the transatlantic agreement immediately and prevent the new tariffs from taking effect. “All we want is to continue producing the steel our U.S. customers value so highly,” Stace added.
The Department for Business and Trade has not yet issued a response. Industry leaders warn that without urgent action, UK steelmakers risk losing contracts, market share, and long-term relationships with U.S. buyers.
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