UK Steelmakers Brace for Shock 50% US Import Tariff Despite Trade Deal Talks

British steel producers are facing fresh turmoil as the United States prepares to impose a steep 50% import tax on steel from the UK, despite an earlier agreement between Prime Minister Rishi Sunak and President Donald Trump aimed at lifting such tariffs. The move, expected to take effect this Wednesday (4 June), would replace the existing 25% tariff that has been in place since 12 March.

The latest development comes as a blow to the UK steel industry, which had been hopeful that a deal announced on 8 May to remove tariffs on British steel exports to the US would be implemented without delay. However, while negotiations continue behind the scenes, the 25% tariff remains in place—and now looks set to double.

According to UK Steel, the industry body representing British steelmakers, the situation threatens critical trade with the US, the UK’s second-largest export market for steel. The US market accounts for approximately £400 million in annual exports—about 9% of the UK’s total steel export value.

Gareth Stace, Director General of UK Steel, voiced deep concern over the escalating trade tensions. “The announcement that US steel tariffs could jump up to 50% on Wednesday is yet another body blow for all UK steelmakers in this torrid time,” he said. “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 added that the delay in implementing the May trade deal has left the industry in a state of confusion. “The deal that the Prime Minister and President Trump struck just a few short weeks ago is yet to be finalised, so this doubling of tariffs plunges the UK steel industry further into uncertainty. We don’t know whether our second biggest export market is still open for business or is being firmly shut in our faces.”

UK Steel is now urging the government to finalise and enforce the agreement urgently. “UK steelmakers should not have to shell out for this new steep hike in US steel tariffs,” Stace concluded. “All we want is to continue producing the steel our US customers value so highly.”

Without immediate action, the UK steel sector risks losing a key market and facing significant financial and operational setbacks at a time when the industry is already under intense global pressure.