UK aluminium and steel exempt from new US 50% import tariff

The new tariff replaces the broad brush 25% tariff President Trump placed on all steel and aluminium imports earlier this year.

The UK will not be subject to the 50% tariff increase on aluminium and steel applied to other countries under Section 232.

Despite the UK Prime Minister and President’s Economic Prosperity Deal (EPD) announcements on 8 May suggesting that UK imports would no longer face an import charge, the original 25% tariff has remained in place for the UK while officials iron out the detail of the decision. 

The US has set a backstop date of 9 July 2025 to finalise terms. On or after 9 July, the US will likely finalise the agreement to replace tariffs with tariff-free quotas, or choose to pull tariffs up to 50% for the UK.

Steel UK notes this is a ‘time-bound vote of confidence for UK steelmaking and our industry’s ability to supply to the US market, but in many ways also creates further uncertainty which is disruptive’.

The US is the UK’s second most important export market, worth around £400mln and totalling 9% by value of exports.

Director-General, Gareth Stace, UK Steel, says, ‘The President’s decision not to impose a 50% tariff on UK steelmakers, but to keep the rate at 25% while the UK-US deal is completed, is a welcome pause…

‘Continued 25% tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike. However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders.

‘The US and UK must urgently turn the May deal into reality to remove the tariffs completely. At an already crushing time for our steel industry, with global oversupply and weak demand, we must continue to work together to support sales levels in our second most important export.'

ALFED, meanwhile, joined a roundtable meeting with UK government to discuss the proposed US tariff increase on aluminium and steel to 50%. It was noted at the time that there was ‘cautious optimism’ that the UK would be exempt from these measures.

The Aluminium Federation states it ‘remains fully engaged with officials and stakeholders on this issue and will continue working to ensure the best possible outcome for our members.

‘We encourage any members with views on quota design or sector-specific concerns to get in touch directly, as your input is vital in shaping the UK’s position ahead of the 9 July deadline.’