The UK steel industry has expressed concerns about the impact of US President Donald Trump’s tariffs, which came into effect at midnight US time. The 25% import tax on steel and aluminum imports has been described as “hugely disappointing” by Gareth Stace, director general of trade association UK Steel.
Stace emphasized that the UK steel sector is not a threat to the US, but rather a partner in addressing global overcapacity and unfair trade practices. He noted that the tariffs could not have come at a worse time for the UK steel industry, which is already struggling with high energy costs and subdued demand.
Key Concerns
– Impact on UK Steel Exports: The tariffs are expected to affect around 5% of UK steel exports and 6% of aluminum exports by volume.
– Trade War Fears: The UK government is working to avoid a trade war, with ministers and officials engaging in frequent talks with their US counterparts.
– Support for UK Steel Industry: The UK government has committed £2.5 billion to rebuild the UK steel industry and support communities.
The European Union has announced plans to implement counter-tariffs on $28 billion worth of US goods starting April 1. The UK government has stressed the need for a “cool-headed approach” and is unlikely to immediately retaliate.
Background
In 2022, the UK and US resolved the steel and aluminum tariffs issue, with the US announcing an expansive removal of section 232 tariffs, re-opening tariff-free access for UK steel and aluminum exporters to the US. However, the recent imposition of tariffs by the US has raised concerns about the impact on the UK steel industry.
Conclusion
The impact of Trump tariffs on the UK steel industry is a significant concern, with the potential to affect exports, lead to trade war fears, and impact the industry’s ability to rebuild and support communities. The UK government’s commitment to a “cool-headed approach” and its efforts to avoid a trade war are crucial in mitigating the effects of these tariffs.