The UK's steel industry is grappling with significant challenges following the imposition of a 25% tariff on steel and aluminum products by the Trump administration on 12 March. Jonathan Reynolds, the UK government's business and trade secretary, is seeking "pragmatic and positive engagement" with the administration to alleviate the impact. However, the European Union has responded with retaliatory measures on American goods exported to the EU, escalating trade tensions.
Tata Steel, which operates the UK's largest steelworks in Port Talbot, exports around $100 million (£77 million) of steel annually to the United States. The tariffs have disrupted this trade flow, "spooking" American customers of British steel, according to Tata Steel UK. Many of these customers are now turning to alternative suppliers in a bid to avoid "tariff warfare," seeking compensation from Tata Steel for the added costs imposed by the tariffs.
"The customers are spooked, the customers are wanting to go to other suppliers to make sure they don't get caught in the tariff warfare," said Rajesh Nair, chief executive of the Community union.
The tariffs must be paid by the importer in the USA, which is affecting Tata Steel's exports of packaging steels and tubular products for the oil and gas industries. The Community union has expressed concerns about the potential impact on UK workers and the sustainability of the steel industry. Alasdair McDiarmid, assistant general secretary of the union, stated that workers are frustrated with the change in trade policy and its implications for their jobs.
"Yes they are angry, of course they are angry," McDiarmid said.
The union is urging Britain to act swiftly and decisively to bolster trade defenses in response to these developments. Nair emphasized the need for immediate protective measures for the domestic industry rather than engaging in retaliatory tactics.
"It has to be some short-term measures to protect what we have in the country, rather than some retaliatory measures," he stated.