By Aysu Bicer
LONDON (AA) - The UK Steel industry has issued a strong warning about the "hugely damaging consequences" of newly imposed tariffs by the US.
US President Donald Trump’s new 25% global tariffs on steel and aluminum came into effect at midnight “with no exceptions or exemptions.”
UK Steel, the country's leading industry group, expressed concern that the move will not only harm direct trade but also push steel trade away from the US and into other markets, such as the UK.
The US remains the UK's second-largest export market for steel after the EU, with exports of specialist steel products accounting for 9% of the total value and 7% of the volume of UK steel exports.
These exports are vital for high-value industries, including defense, oil and gas, construction equipment, and packaging.
UK Steel Director General Gareth Stace emphasized that the tariffs come at a particularly challenging time.
With global steel markets already facing overcapacity and weak demand, the move is expected to further strain the UK’s steel sector, which is already grappling with high energy costs and an oversupplied global market.
“This is hugely disappointing,” Stace said in response to the tariff imposition.
“President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the US, but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade.”
Stace continued to highlight the risks of these tariffs, noting that they could not come at a worse time for the UK steel industry.
“We are already facing high energy costs and subdued domestic demand. The tariffs will exacerbate these issues and increase the pressure on our businesses. Moreover, the EU’s own trade-restrictive actions are likely to amplify the negative impact of the US tariffs.”
The UK Steel group is urging the UK government to continue negotiations with the US to seek exemptions and to take decisive action to protect UK steel exports.