UK steel exporters face a crushing 50% US import tax starting Wednesday (4 June), despite a May agreement between Prime Minister Theresa May and President Trump to exempt them. The new tariff—double March’s 25% rate—threatens £400 million in annual exports, leaving firms scrambling to salvage orders mid-shipment.
Key Details:
- The tax replaces a 25% levy imposed in March, which remained in place despite the UK’s supposed exemption deal announced on 8 May.
- The US is the UK’s second-largest steel market, accounting for 9% of exports.
- Trade body UK Steel warns the hike could trigger immediate order cancellations, with some shipments already en route.
Industry Reaction:
Gareth Stace, director-general of UK Steel, called the move a “body blow” during an already “torrid time” for the sector.
- On Uncertainty: “The PM’s deal with Trump isn’t finalized, and this tariff doubling plunges us into deeper confusion. Is our top market open or closed?”
- On Government Action: “We’re urging ministers to fast-track the exemption. UK firms can’t afford this tax.”
Broader Impact:
The tariff risks pricing UK steel out of the US market, where customers rely on its high-quality supply. Stace emphasized: “We just want to keep supplying the steel America needs.”
Why It Matters:
- Jobs at Risk: The sector supports thousands of UK jobs, many tied to US demand.
- Timeline Pressure: With tariffs active Wednesday, firms face abrupt cost spikes unless the UK-US deal is ratified.
What’s Next?
UK Steel is lobbying for urgent government intervention to lock in the exemption before midweek.
