Britain’s steel industry is bracing for renewed trade tensions after the United States announced plans to double UK steel tariffs to 50% starting Wednesday, despite an earlier agreement to scrap such levies. The move, which replaces the previous 25% tariff introduced by President Trump in March, threatens to disrupt exports worth nearly £400 million annually and jeopardises the UK’s second-largest steel export market.
Although Prime Minister Rishi Sunak announced a breakthrough deal with the US on 8 May to eliminate steel tariffs, that agreement remains unfinalised. As a result, UK steelmakers risk being caught in a policy gap that could cost them contracts, customers, and long-term market stability.
Steel Sector Calls for Urgent Clarity
UK Steel, the industry’s trade body, has raised the alarm, warning that without immediate government intervention, all UK steel shipments to the US could face the punitive 50% duty within days.
Gareth Stace, Director-General of UK Steel, described the proposed tariff hike as “yet another body blow” to an already struggling sector. “Steel companies are fearful that orders will now be cancelled—some of which may already be mid-shipment to the US,” he said.
Stace added that the doubling of tariffs creates “confusion and uncertainty” at a critical time. “The long-promised resolution with the US has yet to materialise. It remains unclear whether our second-biggest export market is open for business—or being firmly shut in our faces.”
UK Falls Into Regulatory Gap Amid US Protectionism
The increased tariff is part of President Trump’s broader protectionist trade agenda, targeting steel, aluminium, and other imports from countries with trade surpluses. While a 90-day pause on reciprocal tariffs was announced earlier this month, the UK appears to have been left in a regulatory vacuum as officials work to finalise the terms of the UK-US trade accord.
UK Steel is now urging the government to swiftly complete the deal and implement the removal of import taxes on British steel before the 50% duty comes into force.
“All we want is to keep producing the steel our US customers value so highly,” said Stace. “UK manufacturers should not be penalised due to political delays.”
Tariff Hike Threatens Jobs and Export Contracts
The US currently represents 9% of the UK’s total steel exports by value. Industry leaders fear that without immediate resolution, the tariff hike could lead to widespread contract cancellations, reduced production, and lasting damage to the UK’s steel trade with the US.
As of now, the Department for Business and Trade has not issued a comment on the situation.
