UK steel exports to US face devastating blow from new tariffs: UK Steel

UK Steel, the UK steel association, said on Feb. 10 that while full details and a formal policy announcement must wait for comments from the White House regarding new tariffs on steel that are "extremely concerning" and a "devastating blow" to the UK industry if confirmed.

The UK Steel Association issued its statement after US President Donald Trump told reporters on Air Force One on Feb. 9 that he would announce new 25% tariffs on steel and aluminum imports to the country.

The US is the UK's second-largest export market after the EU. According to association data, the UK exported 300,000 mt of steel to the US in 2017 before Section 232 tariffs were imposed in 2018, worth Eur490 million.

The UK exported an average of 200,000 mt of steel products, worth Eur320 million, over 2018-2021. In 2022, the UK and the US agreed on a system of tariff rate quotas, allowing exports to recover slightly to 235,000 mt, worth Eur517 million. However, the next two years have seen a tough market for steel due to high costs and weak demand, impacting UK steel production and exports, the UK Steel data showed.

In 2023, the UK's steel exports to the US totaled 165,000 mt, worth Eur388 million.

"At a time of shrinking demand and high costs, rising protectionism globally, particularly in the US, will stifle our exports and damage over Eur400 million worth of the steel sector's contribution to the UK's balance of trade," UK Steel director general, Gareth Stace explained.

"It is deeply disappointing if President Trump sees the need to target UK steel, given our relatively small production volumes compared to major steel nations. The UK produces world-leading steel, supplying the US with high-quality products for defense, aerospace, stainless, and other critical sectors, materials that simply cannot be replicated elsewhere." He added.

"At the same time, the introduction of further US tariffs will inevitably divert global trade flows, with excess steel potentially redirected to the UK market. This reinforces the urgent need for watertight UK trade measures in 2026 to prevent surges in imports following the UK's steel safeguards expiry," Stace concluded, underlining the need to accelerate the UK's CBAM to 2026 to add an extra layer of protection against what he labeled as "unfairly priced steel" nd urging the UK government to act decisively to shield the UK domestic industry.

According to Platts, part of S&P Global Energy, the UK hot-rolled coil market remained stable through the week to Feb. 6, with prices remaining unchanged at GBP525/mt DDP West Midlands.

When approached by Energy on Feb. 10 for a comment, the UK government said, "We have seen President Trump's comments and will be seeking further details." It added that "the UK and the US benefit from a strong and balanced trade relationship -- worth around Eur300 billion and supporting millions of jobs" and that it looks forward to working closely with President Trump to further strengthen UK-US trading relations.

While the EC also said that we had to wait and see what Trump said, their response was firmer, emphasizing that the imposition of tariffs would be unlawful and economically counterproductive, and that they would react.