This blanket tariff, which ends all country exemptions to the levies, means that US businesses wanting to bring steel and aluminium into the country will have to pay a 25% tax on them.
The US is a major importer of aluminium and steel.
President Trump says he hopes the tariffs will boost US steel and aluminium production but critics say it will raise prices for US consumers and dent economic growth.
Trade body, UK Steel says the US is the UK’s second most important export market for steel after the EU. US exports account for 9% of UK steel exports by value and 7% by volume – mostly specialist steel that goes into crucial sectors such as defence, oil and gas, construction equipment and packaging.
The EU has already announced counter-measures on £21.9bn worth of US goods in retaliation to Trump’s tariff.
The UK’s Business Secretary Jonathan Reynolds has called the tariffs “disappointing” and says the UK is pushing for a trade deal with the US. He said the UK has said it has “no plans” to take immediate retaliatory action.
The tariffs are the latest blow to Welsh steel production after Tata Steel’s decision to cut 2,800 jobs at its Port Talbot works as part of plans to change production to use greener electric arc furnace which is expected to become operational in late 2027.
Other remaining steel works in Wales include Trostre Steelworks in Llaneli which produces tinplated steel for packaging, Celsa Steel UK in Cardiff which produces reinforcing bars and wire serving various construction and manufacturing sectors, Llanwern Works in Newport which produces strip steel and Shotton Works in Deeside, North Wales which manufactures approximately 500,000 tonnes of metallic coated and pre-finished steel per year for building envelope, domestic and consumer applications.
Responding to the news that the UK has been hit with a 25% import tax on steel imports to the US, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: “This development only goes to show that Donald Trump and his sidekick Elon Musk to ride roughshod over UK interests, while the Conservatives and Nigel Farage gleefully cheer them on.
“Labour must respond to Trump’s move with a show of strength to protect what is left of the Welsh steel industry. We know from his previous actions that this is the only way to stand up to him.
“The Government should now draw up plans for retaliatory tariffs, including plans for a Tesla tariff to hit Musk where it hurts.”
Gareth Stace, the Director General of trade association UK Steel said:
“Today’s imposition of tariffs on UK steel from the US administration is hugely disappointing. 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.
“These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape. What’s more, the EU will also be taking trade restrictive action soon that will amplify the impact of US tariffs.
“It is essential that the UK Government not only continues efforts to negotiate exemptions with the US, but also takes decisive action to bolster our trade defences. We greatly appreciate all the efforts that have been made so far and will continue working closely with our Government to secure the best possible outcome.”
(Lead image: Tata Steel)
