President Trump has slapped a 25% tariff on steel imports (Image: Getty)
Donald Trump's 25% tariff on steel imports will be "another nail in the coffin" for the UK's steel industry which supports more than 75,000 jobs, bosses warned. Prime Minister Sir Keir Starmer was urged to "negotiate a full exemption for the UK" and save the industry from collapse.
Gareth Stace, director general of UK Steel which represents firms across the UK, said orders were already being cancelled. He said the UK faced two threats because it had become harder to sell products to the US while British businesses also face a huge increase in competition from other parts of the world. Producers overseas would "swamp" the UK with cheap steel after tariffs stopped them selling to America, he said.
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Donald Trump's global tariffs on steel and aluminium came into effect at midnight in the US, around 4am GMT, and raise a flat duty on the metals entering America to 25%. The fees include products made from the metals, from nuts and bolts to bulldozer blades and fizzy drink cans.
READ MORE: FTSE 100 plummets to lowest level in two months as Trump wages trade war
There are 33,700 people directly employed in the UK steel industry and 42,000 working in the supply chain.
Mr Stace said: " The effect of these tariffs will further diminish our sector and therefore in extreme circumstances be another nail in the coffin.
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"We're already seeing in the last few days our customers in the US cancelling orders, pausing orders. One of our members has talked about that there are literally storms on the Atlantic and have delayed their shipment into the US. So that shipment will now attract a 25% tariff."
He added: "It's a huge amount given that we're still suffering from high energy costs that our competitors don't pay. We're seeing global overcapacity, the same issue that President Trump is seeing. We want to work with him to tackle that."
Mr Stace urged Keir Starmer "to look at the direct impact of that Trump tariff tax take that started this morning and negotiate a full exemption for the UK. President Trump should recognise that we want to work with him, not against him."
But he also said the Government should not retaliate with its own tariffs and instead should try to mantain good relations with the US. "This morning it is about keeping a cool head because tariffs came in about three hours ago. We're hugely disappointed that the US administration brought these tariffs in on all British-made steel going to the US. Surely President Trump must realise that we're his friend, not his foe, and our valued customers in the US see us as partners, not as enemies."
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UK Steel said that in 2024 the UK exported 180 thousand tonnes of semi-finished and finished steel to the US, worth ￡370 million, some 7% of the UK’s total steel exports by volume and 9% by value.
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Exports include specialised steel used by the US Navy on its submarines, with the Government arguing that the tariffs will push up costs for American taxpayers, in an attempt to persuade Mr Trump to change course.
The aluminium industry said the US market accounts for 10% of exports – valued at ￡225 million.
The UK Business Secretary has described Donald Trump’s decision to impose global tariffs on steel and aluminium as “disappointing” and said “all options” are on the table to respond in the national interest. However the UK has previously made it clear it is unlikely to impose any tariffs on the US, and is concentrating instead on attempting to convince Mr Trump that US tariffs imposed on the rest of Europe should not apply to the UK.