- UK condemns U.S. steel tariffs but avoids immediate countermeasures
- 7% of British steel exports by volume now face 25% import taxes
- Trade minister hints at future retaliatory actions if talks stall
- Tariffs compound struggles for Port Talbot steelworks cutting 3,000 jobs
The British government has labeled the Trump administration’s latest steel and aluminum tariffs as deeply disappointing, marking a fresh strain in U.S.-UK trade relations. While Business Secretary Jonathan Reynolds emphasized the UK would not immediately mirror the EU’s retaliatory measures, he warned that all options remain on the table to protect national interests. This cautious approach reflects Prime Minister Keir Starmer’s strategy to maintain diplomatic channels with Washington amid ongoing negotiations for a bilateral trade agreement.
Industry analysts note the tariffs arrive during a pivotal transition for Britain’s steel sector. Port Talbot’s Tata Steel plant, responsible for 4% of UK steel production, recently announced plans to replace coal-powered blast furnaces with electric arc technology. This £1.2 billion green shift, while environmentally necessary, will eliminate 3,000 jobs by late 2025. The new U.S. import taxes compound pressure on an industry already grappling with global steel overcapacity—estimated at 540 million metric tons annually—which has suppressed prices by 18% since 2022.
Regional impacts are particularly acute in Wales, where steel accounts for 12% of manufacturing GDP. The Welsh government’s £100 million Steel Innovation Fund aims to retrain workers for roles in renewable energy projects, including offshore wind turbine production. This case study highlights how tariff disputes accelerate structural industry changes. Meanwhile, UK aluminum exporters face parallel challenges, with 10% of their overseas market share now under threat from the new U.S. policy.
Trade experts identify three critical factors shaping negotiations: the UK’s push for tariff exemptions similar to those granted to Mexico and Canada, Washington’s concerns about Chinese steel transshipment through British ports, and Starmer’s bid to finalize a limited trade pact before the November U.S. election. With 73% of UK steel exports to America serving automotive and aerospace sectors, the tariffs could add £600 million annually to manufacturers’ costs—potentially slowing the UK’s electric vehicle production goals.
