US 25% tariffs on UK steel imports come into effect
12 March 2025
President Trump’s 25% tariffs on steel and steel derivative products have today come into effect, with no exemptions granted to the UK or any other trading partners. These will have hugely damaging consequences for UK suppliers and their customers in the US. They will also have a further harmful indirect effect of deflecting steel trade from the US into markets like the UK. Further reciprocal tariffs are also expected be announced by the US on 2 April.
The US is the UK’s second most important export market for steel after the EU, particularly as it is a high value market. US exports account for 9% of UK steel exports by value and 7% by volume - mostly specialist steel that goes into crucial sectors such as defence, oil and gas, construction equipment and packaging. At a time of already highly challenging market conditions, with global overcapacity and oversupply, high energy costs, and weak demand, the blow to our exports will be detrimental.
Meanwhile, the UK is only partially shielded from trade diversion. Steel safeguard quotas have been liberalised every year and are now 22% larger than when they were first introduced in 2018. All while UK demand has contracted by 16%. These quotas are oversized and do not offer adequate protection from the large-scale trade diversion that is likely to take place.
These measures will lapse in June 2026. It is essential that existing measures are tightened, as the EU is doing with its own measures, and concrete plans are put in place for the replacement of safeguards, ideally well before their expiry. There is a huge amount of momentum around steel in the EU, including its Steel and Metals Action Plan to be presented on 19 March. This will further add to the pressure both on the UK’s direct exports, as well as our trade defences.
UK Steel Director General, Gareth Stace, said:
“Today’s imposition of tariffs on UK steel from the US administration is hugely disappointing. President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the US, but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade.
“These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape. What’s more, the EU will also be taking trade restrictive action soon that will amplify the impact of US tariffs.
“It is essential that the UK Government not only continues efforts to negotiate exemptions with the US, but also takes decisive action to bolster our trade defences. We greatly appreciate all the efforts that have been made so far and will continue working closely with our Government to secure the best possible outcome.”
Contact details
Louise Young, Campaigns and Engagement Manager, UK Steel
07388 370176 | Lyoung@makeuk.org
Notes to editors
- UK exports to the US: In 2024, the UK exported 180 thousand tonnes of semi-finished and finished steel to the US, worth £370 million. This accounts for 7% of the UK’s total steel exports by volume and 9% by value.
- Global excess capacity: Global excess capacity was estimated at 543 million tonnes in 2023 and is forecasted to reach 630 million tonnes by 2026 – equivalent more than 100x the UK’s production. Capacity expansions in Southeast Asia and the Middle East are continuing at an alarming rate – these are largely state-funded, mostly for high-emission blast furnaces and often do not correspond to domestic demand trends. Indeed, steel demand is weakening in key markets, notably China, translating into rising oversupply which is dampening steel prices and spilling over into other markets.
- EU steel activity: In the last two weeks alone, the EU announced horizontal measures under the EU Clean Industrial Deal, followed by a ministerial steel meeting of 15 members states, and the launch of the Strategic Dialogue on the Future of the European Steel Industry by Ursula von der Leyen. This will culminate in the Steel and Metals Action Plan to be presented on 19 March. The EU has already committed to setting out its long-term plan for replacing steel safeguards expiring in June 2026. Before the end of the month, the Commission will also be announcing the outcome of its steel safeguards review, which is widely expected to result in tariff-rate quotas becoming more restrictive.
The UK steel sector:
- Produces 5.6Mt of crude steel a year, equivalent to 70% of the UK’s annual requirement (annual demand of 7.6Mt in 2023, of which 40% was met by domestically produced steel)
- Employs 33,700 people directly in the UK and supports a further 42,000 in supply chains
- The median steel sector salary is £37,315, 26% higher than the UK national median and 35% higher than the regional median in Wales, Yorkshire, and Humberside, where its jobs are concentrated
- Directly contributes £1.8 billion to UK GVA and supports a further £2.4 billion
- Directly contributes £3.4 billion to the UK’s balance of trade 96% of steel used in construction and infrastructure in the UK is recovered and recycled to be used again and again.
For further information about the steel industry, please see the UK Steel Seven Opportunities for Steel report, 2024 press pack, Why the UK needs a strong steel sector or the 2024 UK Steel Key Statistics report.