*Trump's Steel Tariff Announcement Sparks Concerns*
In a recent development, President Trump has not officially announced a 50% tariff on steel imports. However, according to a fact sheet from President Trump's administration, he did sign proclamations to restore a true 25% tariff on steel and elevate the tariff to 25% on aluminum, aiming to protect America's critical steel and aluminum industries ¹.
*Potential Impact on the UK Steel Industry*
If the UK steel industry is impacted by Trump's tariff policies, it could be significant. The UK exports around 200,000 tonnes of steel per year to the US, worth over £400 million. Any changes to current agreements between the UK and the US could have a hugely damaging impact on the UK steel sector, both directly and via trade diversion from countries that may be barred from exporting to the US ².
*Key Concerns for the UK Steel Industry*
- *Trade Diversion*: Excess steel may be redirected to the UK market, potentially leading to a surge in unfairly priced imports and undermining UK steelmakers.
- *Existing Safeguards*: The UK's existing Steel Safeguard measures partially shield the industry, but these expire in June 2026.
- *Carbon Border Adjustment Mechanism*: The UK CBAM, a tax measure on high-emission steel imports, will not come into force until January 2027.#TrumpMediaBitcoinTreasury
*Industry Reactions*
- Gareth Stace, UK Steel Director General, emphasizes the need for watertight UK trade measures in 2026 to prevent surges in imports following the UK's steel safeguards expiry.
- Alasdair McDiarmid, Community's Assistant General Secretary, calls for a strong UK Carbon Border Adjustment Mechanism and robust new measures to shield the steel sector from cheap imports ².$ETH #TRUMP #Binance
