The U.K. has for the moment been spared from Donald Trump’s overnight statement that he was raising Tariffs on steel coming into the United States from 25 to 50 per cent
However it is being reported that the President is now threatening to hit the UK with full 50% steel tariffs if he decides it isn’t complying with last month’s ‘deal’
The US imposed a five week deadline to get an actual agreement
At the time, Kier Starmer described the deal as one that “will remove tariffs on British steel and aluminium, reducing them to zero.”
Dr Jonathan Owens, University of Salford’s operations and supply chain expert, comments: “The decision to double tariffs on foreign steel and aluminium imports from today to 50% represents a significant escalation in US trade policy. The focus is the protection of the US steel and aluminium industry, under the “make and buy” American by the Trump administration.
“This doubling to 50% signals an even more aggressive protectionist stance, aiming to further stimulate domestic production and attempt to convince American companies to reduce reliance on imports. Unfortunately, this is not possible for everything, as cost of importing is passed to the customer. We saw displeasure of this with US companies attempting to stall the Trump tariff rollout.
“The UK has temporarily escaped, with the current 25% tariff in place only until the 9 July. Is this delay only a temporary reprieve? Kicking the can down road makes it a more challenging environment for any business to work in. Any potential new orders for the US are probably not going to be placed due to manufacturing and US shipping times. Also, it is very difficult to plan and make considerations for business and supply chain investments.
“Uncertainty impacts the suppliers for the UK steel and aluminium businesses too. Due to the fast-approaching July date, UK supply chains associated with steel and aluminium will need to have developed their supply chain resilience plan to keep pace with their global competitors.”
