The move, part of his long-standing protectionist agenda, means that businesses bringing these metals into the US must now pay a 25 per cent tax.
The impact on the UK is significant. British steel producers, who send around 10% of their exports to the US, could struggle to compete, while manufacturers relying on American goods may face higher costs. Consumers, too, could feel the effects—rising tariffs may push up prices for cars, electronics, and even petrol.
Here is everything you need to know about Trump’s tariffs in under five minutes:
The UK probably won’t retaliate, but the EU will
Treasury minister James Murray stated on Wednesday morning that the UK “reserves our right to retaliate” before reiterating that the Government has firmly ruled out this route.
So far, it appears that Sir Keir Starmer and Business Secretary Jonathan Reynolds’s overtures to their US counterparts have not secured the UK an exception.
The bloc has announced it will impose €26bn (£22bn) of “countermeasures” on the US, with European Commission President Ursula von der Leyen calling the tariffs “unjustified trade restrictions”.
“The European Union must act to protect consumers and business,” she said shortly after the new tariffs came into force at 4 am GMT.
Ursula von der Leyen has called the US tariffs “unjustified trade restrictions”. (Photo: Reuters)What is a tariff?
A tariff is a tax imposed on imported goods which aims to regulate trade by making foreign products more expensive.
There are two main types: ad valorem tariffs, which are a percentage of the product’s value, and specific tariffs, which are fixed fees per unit (e.g. per ton or per item). The steel tariffs the US is imposing fall into the former category.
Tariffs serve various purposes, such as protecting domestic industries from cheaper foreign competition, generating government revenue, or retaliating against unfair trade practices.
While tariffs can boost local production, if countries impose retaliatory measures on each other’s exports, they may also lead to higher consumer prices and trade disputes.
This will have knock-on effects for the UK’s steel industry. The US is the UK steel industry’s second-largest export market after the EU, with around 10 per cent of British steel exports heading across the Atlantic. In 2023, Britain exported 166,433 tonnes of steel to the US.
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Nadine Bloxsome, chief executive of the Aluminium Federation, echoed his concerns, saying that the UK was “already seeing the first impacts of these tariffs.”
At the same time, cheaper imported aluminium products may flood the UK market, making it harder for local manufacturers to compete.
The price of everyday items could go up
Trump’s steel tariffs could have ripple effects on the UK economy, affecting everything from car prices to mortgage rates.
Industrial machinery and electronics may see price hikes as tariffs disrupt global supply chains.
The UK’s close trade ties with the EU—where 40 per cent of our trade takes place—mean tariffs on European goods could also have indirect effects.
If global inflation rises, UK interest rates could stay high for longer, pushing up borrowing costs and mortgage rates, making Trump’s tariffs a concern for British households and businesses.
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