UK steel makers brand Donald Trump import tariffs a 'sledgehammer' to economy

The backlash against US President Donald Trump's planned alloy import tariffs has grown - with the EU threatening to retaliate

British alloy makers person blasted US President Donald Trump’s “sledgehammer” import tariffs, informing the UK volition beryllium among the countries facing the biggest shock.

Trade assemblage UK Steel said exports to the States present look a 25% import taxation aft President Trump ordered a caller levy connected each alloy and aluminium entering the US. The determination cancels retired erstwhile quota arrangements and exemptions, including for the UK and EU, it said. And it claimed the caller tariffs “primarily people US allies”, specified arsenic the UK, arsenic astir different countries were already taxable to 25% alloy tariffs.

The White House says alloy imports from Australia, the EU, Japan, and the UK roseate from 18.6% successful 2020 to 20.7% successful 2024. However, UK Steel says this ignores 2020’s historically debased request during the Covid pandemic. It says UK alloy exports to the US were really 14% little successful 2024 than successful 2018 erstwhile tariffs were archetypal introduced.

Gareth Stace, manager wide of UK Steel, said: “President Trump has taken a sledgehammer to escaped commercialized with immense ramifications for the alloy assemblage successful the UK and crossed the world. This volition not lone hinder UK exports to the US, but it volition besides person hugely distortive effects connected planetary commercialized flows, adding further import unit to our ain market.” UK alloy poses nary menace to US nationalist security. Our high-quality products service cardinal US industries, galore of which cannot root these domestically. This is simply a infinitesimal wherever our countries should enactment unneurotic to tackle planetary alloy overproduction, not to beryllium astatine loggerheads. The UK stands with the US connected tackling planetary excess alloy capableness and unfair trade, and our manufacture urges the UK Government to instrumentality stronger enactment connected these issues.

Alasdair McDiarmid, adjunct wide caput astatine the Community union, said: “The caller tariff confirmed by Donald Trump is simply a immense origin for concern, and represents a retrograde measurement for the alloy manufacture and economies connected some sides of the Atlantic. There is present an adjacent greater request for broad safeguards to support our home alloy from inexpensive overseas alloy imports.”

Mr Trump said helium would travel with announcements astir reciprocal tariffs connected each countries that enforce duties connected US goods implicit the adjacent 2 days, and said helium was besides looking astatine tariffs connected cars, semiconductors and pharmaceuticals. Asked astir threats of retaliation by different countries against his caller tariffs, Trump said: “I don’t mind.”

The EU has vowed to deed backmost astatine US tariffs connected alloy imports. Brussels threatened “firm and proportionate countermeasures” successful a ratcheting up of a commercialized warfare triggered by President Donald Trump. European Commission President Ursula von der Leyen said: “The EU volition enactment to safeguard its economical interests.”

EU tariffs connected US products specified arsenic bourbon, motorcycles and orangish foodstuff are presently suspended until the extremity of March. Maros Sefcovic, the EU’s commercialized chief, described the US determination successful a code successful the European Parliament arsenic a “lose-lose scenario”.

Steel imports accounted for astir 23% of American alloy depletion successful 2023, with Canada, Brazil and Mexico the largest suppliers. Canada, whose abundant hydropower resources assistance its metallic production, accounted for astir 80% of US superior aluminium imports successful 2024.

Canada’s Prime Minister Justin Trudeau has called the tariffs “unacceptable”. He added: “Canadians volition basal up powerfully and firmly if we request to.” While China exports lone tiny volumes of alloy to the US, it is liable for overmuch of the world’s excess capacity.