UK steel industry bosses have raised concerns about the impact of President Trump’s decision to impose 25% tariffs on steel and aluminium imports from all countries, including the UK. They have warned that US customers are already taking steps to cancel orders, leading to potential losses in sales and profits for the industry. This comes at a time when the steel industry is facing challenges in remaining competitive globally, largely due to high energy costs.
Tata Steel UK’s chief executive, Rajesh Nair, highlighted that the company stands to lose $100 million (£77 million) in sales to the US as a result of the tariffs. He explained that customers are anxious about the tariff situation and are exploring alternative suppliers to avoid being negatively impacted. Some customers have even requested compensation for potential orders that may be affected.
Allan Bell, chief commercial officer at British Steel, echoed similar concerns, noting that the company has already lost business to US competitors in certain areas. He anticipates further order losses in the coming months as US customers seek alternative sources for their steel needs.
The steel industry leaders expressed disappointment with the government’s response thus far but stopped short of calling for retaliatory tariffs. Instead, they urged swift action from the Trade Remedy Authority to strengthen import safeguards and prevent the UK market from being flooded with cheaper steel products originally intended for the US.
While the European Union has announced countermeasures against the US tariffs set to take effect on April 1, the UK has held back pending further trade negotiations with the Trump administration. Business Secretary Jonathan Reynolds is scheduled to engage in discussions with US counterparts in Washington DC to address the ongoing trade concerns.
In addition to seeking exemptions during the upcoming talks, the steel executives emphasized the need for import safeguards aligned with those of the EU. They also called for additional support with energy costs to enhance the industry’s competitiveness. Mr. Bell highlighted the disparity in energy prices, noting that UK steelmakers are paying 50% more for wholesale energy compared to their counterparts in France and Germany.
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