UK Steel says Trump has ‘taken a sledgehammer’ to free trade after 25% import tax

British steel body UK Steel accused US President Donald Trump of taking a "sledgehammer to free trade" after he imposed 25% tariffs on all US steel and aluminum imports

"President Trump has taken a sledgehammer to free trade with huge ramifications for the steel sector in the UK and across the world," UK Steel Director General, Gareth Stace, said. "This will not only hinder UK exports to the US, but it will also have hugely distortive effects on international trade flows, adding further import pressure to our own market."

UK steel now faces a 25% import tax after Trump ordered a new tax on all steel and aluminum entering the US Feb. 10. The new tariffs are expected to cancel out previous quota arrangements and exemptions, including for the UK and EU. Product-specific exemptions for steel not made in the US have also been scrapped and the tariffs now extend to derivative products, with only steel "melted and poured" in the US but processed elsewhere remaining exempt.

"UK steel poses no threat to US national security. Our high-quality products serve key US industries, many of which cannot source these domestically. This is a moment where our countries should work together to tackle global steel overproduction, not to be at loggerheads," Stace said, urging the UK government to take stronger action on these issues.

"This is clearly a new era for global trade. We are confident the UK government recognizes the impact on our industry and will explore all available options. Both immediate responses, such as negotiating a solution and long-term measures to prevent harmful trade diversion into the UK market, are options," Stace said.

The UK trade minister would discuss the new tariffs in Parliament Feb. 11, a spokesperson for Department for Business and Trade said.

According to UK Steel data, the UK exported 300,000 mt of steel to the US in 2017 before Section 232 tariffs were imposed in 2018 and then exported an average of 200,000 mt over 2018-21. The UK and the US agreed a system of tariff rate quotas in 2022, when exports recovered slightly to 235,000 mt. In 2023, UK steel exports to the US totaled only 165,000 mt.

According to worldsteel data, the UK produced 5.62 million mt of crude steel in 2023 and for 2024 is estimated to have produced 3.96 million mt.

The UK hot-rolled coil market remained stable through the week to Feb. 6, with prices remaining unchanged at GBP525/mt ($651/mt) DDP West Midlands, according to Platts, part of S&P Global Commodity Insights.