Britain’s steelmakers are bracing for a sharp escalation in trade tensions after the United States signalled it will double import tariffs on UK steel to 50% from Wednesday — despite a recent transatlantic deal to remove such duties.
The expected hike replaces the 25% tariff President Trump imposed on foreign steel earlier this year, which officially came into force on 12 March. Although the Prime Minister announced on 8 May that a breakthrough deal had been reached with the US to eliminate the steel levy, that agreement has yet to be finalised — leaving UK steel exports in limbo.
UK Steel, the industry’s trade body, warned that unless urgent clarity is provided, all UK steelmakers exporting to the US could be hit by the punishing new tax within days. The US is Britain’s second-largest steel export market, worth approximately £400 million annually and accounting for 9% of total exports by value.
Gareth Stace, Director-General of UK Steel, described the move as “yet another body blow” to an industry already struggling with global price volatility and rising production costs.
“UK steel companies are this morning fearful that orders will now be cancelled, some of which are likely being shipped across the Atlantic as we speak,” he said.
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