President Trump has imposed new 25 per cent tariffs on all British steel entering the US market, a move described as “deeply disappointing” by UK Steel Director Gareth Stace.
The tariffs, which came into effect on Wednesday, have removed all previous exemptions from Trump’s 2018 steel and aluminium import taxes.
“I would hope that President Trump realises that we’re his friend, not his foe,” Stace told GB News.
The impact on British steel manufacturers has been immediate and severe.
Stace has urged the president to reconsider
REUTERS / GB NEWS
“What we’re seeing is our members are telling us that their US customers are cancelling orders over there,” Stace revealed.
US buyers are also delaying orders from British suppliers.
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Economists are sounding the alarm over the impact of Trump tariffs GETTY One shipment has been particularly unfortunate. Stace described “a boat full of steel” caught in a storm while en route to America.
“That shipment will now cost the US customer 25 per cent more, it’s not good,” he said.
Trump’s move is part of a broader strategy to “disrupt and transform global commerce,” removing all exemptions from his 2018 tariffs.
The US president has also increased aluminium tariffs from 10 per cent to 25 per cent.
Gareth Stace joined Andrew Pierce and Bev Turner on GB News
GB NEWS
He has separate tariffs on Canada, Mexico and China, with plans to tax imports from the European Union, Brazil and South Korea starting on 2 April.
Trump told business leaders that higher tariffs would encourage companies to build factories in the US.
Stace expressed hope for a swift resolution through ongoing negotiations.
“I hope that we can find an outcome as soon as reasonably possible,” he said.
The UK Steel Director emphasised the importance of securing a full exemption for British steel.
“I hope we keep cool heads so these negotiations to get a full exemption for steel going into the US market from the UK is achieved,” Stace added.
He stressed that American customers value British steel suppliers.
Stace was clear that Prime Minister Keir Starmer cannot be blamed for the situation.
“Trump has said to his team no exemptions across the board,” he explained.
“I think it’s a difficult job for the prime minister to do. These negotiations are ongoing and I very much support them.”
The blanket nature of Trump’s tariff policy has left little room for immediate diplomatic solutions.
While Trump’s tariffs could boost US steel and aluminium plants, they may raise prices for manufacturers using these metals as raw materials.
A 2023 US International Trade Commission study found that tariffs in 2021 caused downstream companies’ production to fall by nearly $3.5 billion.
This loss exceeded the $2.3 billion production increase by aluminium producers and steelmakers.
The US Chamber of Commerce has questioned whether companies will expand operations amid higher prices and lower profits.