The UK steel and aluminium industries are reeling from the impact of U.S. President Donald Trump’s newly enforced tariff, warning that the 25% import tax could not have come at a worse time.

With the levy taking effect at midnight in the U.S. (0400 GMT), industry leaders are urging the UK government to step up negotiations to prevent further damage to British exports. Officials, however, are stressing the need for a “cool-headed approach” rather than immediate retaliation.

Gareth Stace, Director General of UK Steel, called the tariffs “hugely disappointing,” emphasizing that the UK is a key U.S. ally, not a trade threat. “These tariffs couldn’t come at a worse time for the UK steel industry, as we battle high energy costs and subdued demand,” he said.

The aluminium sector is also feeling the strain. Nadine Bloxsome, Chief Executive of the Aluminium Federation, warned that the tariffs are already disrupting the market, risking UK sustainability goals and flooding the domestic industry with cheap imports.

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Trade experts fear escalating tensions could spark a full-blown trade war, with the European Union already planning counter-tariffs worth $28 billion starting April 1. William Bain, Head of Trade Policy at the British Chambers of Commerce, urged both nations to avoid a tit-for-tat escalation.

Despite ongoing diplomatic efforts, Prime Minister Keir Starmer’s government remains on high alert. “We remain prepared to defend the UK’s national interest where it’s right to do so,” a government spokesperson stated.

With around 5% of UK steel and 6% of aluminium exports heading to the U.S., businesses are calling for urgent action to mitigate the fallout.

While Trump has previously backed down on similar trade threats, uncertainty looms over whether the UK can secure an exemption before lasting damage is done.

NAN