The U.S. has said the U.S. will double the tariffs on British steel to 50% of its steel, despite a recent transatlantic deal to perform such duties.
The expected rate hike replaces the 25% tariff imposed on foreign steel earlier this year, which will officially take effect on March 12. Although the Prime Minister announced a breakthrough agreement with the United States on May 8 to eliminate the steel tax, the agreement has not yet been terminated – putting British steel exports in a difficult situation.
UK Steel, a trade body in the industry, warns that all British steel manufacturers exporting to the United States may be punished for a new tax within a few days unless emergency clarity is provided. The United States is the second largest steel export market in the UK, worth about £400 million per year, accounting for 9% of the total value.
British Steel Director General Gareth Stace described the move as “again hit” for an industry that has struggled with global price volatility and rising production costs.
“This morning, British Steel was worried that orders would be cancelled now, some of which could be shipped on the Atlantic Ocean as we spoke,” he said.
Stas warned that “double tariffs have made the British steel industry even more confusing”, noting that a long-term resolution between the two governments has not yet been fulfilled. “There is still uncertainty as to whether and when our second largest export market will open or firmly close our faces in business.”
The 50% tariff forms part of the escalation of U.S. trade protectionism under President Trump, who has imposed a comprehensive responsibility on steel, aluminum and other countries that have over-trade trade with the United States. Despite a 90-day temporary pause in reciprocity tariffs earlier this month, Britain appears to have fallen into a regulatory gap as officials scramble to enforce the terms of the UK agreement.
Staces urged the UK government to take decisive action and determine the deal before the new tariffs are reached.
“British Steel is now urging our government to eliminate the UK steel import tax and to take effect urgently. British steel manufacturers do not have to make this new steep rate hike in the US steel tariffs. All we want is to continue to produce steel from our US customers and make our steel worth a lot.”
Industry leaders worry that unless the agreement is quickly approved, UK producers could face cancelled contracts, lost market share and long-term losses in trade relations with U.S. buyers.
The Ministry of Commerce and Trade has not commented on the latest developments.
