The UK steel industry is at a critical tipping point. The preliminary agreement reached to finally lift the 25% tariff on its exports to the US has now been put on ice indefinitely. Industry leaders across the nation are terribly worried about this tariff. It affects 6% of all UK steel exports by volume, 9% by value, and the sector is already under severe financial distress.
Gareth Stace, the director of UK Steel, emphasized how critical the situation truly is. As a solution, he called on the UK government to introduce trade barriers that would act as defense for the domestic steel industry. Stace reiterated the call of his organization for the UK government to urgently increase its trade defenses. This step is essential to make UK steelmakers competitive enough so that they can secure a sustainable share of their market. Under these market circumstances, the last country to defend their nascent industry will be the first to see it vanish.
In addition, the UK government similarly recently took control of Chinese owned plants in Scunthorpe. Furthermore, it walked into control of Liberty Steel plants in Rotherham and Stocksbridge, which have since crumbled while in the care of the government. In response to the report, a government spokesperson acknowledged the UK’s “strong competitive position.” This comes as other countries deal with much higher tariffs—up to 50%. They stated, “We are continuing to work closely with the US to deliver certainty for UK industry, protect skilled jobs and support economic growth as part of our Plan for Change.”
Concerns continue to mount around UK steel exports. US officials are scrutinizing exports from Tata Steel, the largest steelmaker in the UK. The company has shuttered its blast furnaces, ending production of steel from basic raw materials in the U.S. Tata Steel is awaiting commissioning of new Electric Arc furnaces which should come into operation by 2027.
The UK steel industry is suffering the effects of a global glut of cheap steel, causing many other countries to raise trade barriers. Senior government sources maintain that there is still a route to zero tariffs. They admit uncertainty remains about the future of UK steel exports.