UK Steel: Trump tariffs would have "big negative impact" on sector
The trade body is also calling on the Government to further subsidise steel companies energy costs to increase competitiveness
Last updated 21st Feb 2025
US president Donald Trump has proposed a 25% tariff on all steel imports.
The UK currently exports around 10%, or £400 million a year, of it's steel to the US.
Sites like Scunthorpe have faced years of uncertainty, with Director of UK Steel Gareth Stace saying Trump's aims will add to this:
"Potential tariffs from the US would have a big impact on our sector, a big negative impact on our sector.
"The US, it's a very important market for us. Why? Because it's higher value steel. And so if President Trump really does carry out his intention to impose a 25% tariff on that £400 million, that is a £100 million tariff tax.
"It's not our whole market, but given that we're in very difficult times in the UK steel sector any impact on our sales will hit hard."
British Steel Scunthorpe is set to build two new electric arc furnaces to replace it's coal-fired ones.
This is a positive step for the environment but could bring higher energy costs.
Mr Stace believes the government should up it's subsidy of network standing charges from the current rate of 60% to 90% to help the industry be more competitive.
**"We pay something like 50% more for our energy than our competitors, steel companies in France or Germany.**
"And that makes us uncompetitive, given that steel is traded globally. Prices often set globally.
"So therefore, if our input costs are higher than our competitors, whether they're in Europe or globally, then we often lose out when we're trying to sell our steel.
"We've seen a surge in imports of steel to the UK - 68% of UK steel demand is met by imports, that's a 50% rise."
The Community union is asking for a 2 hundred million pound support package from the government saying it's the only way to save the future of steel making there to secure the future of Scunthorpe's steelworks.
Their proposal aims to keep the existing blast furnaces operating at the British Steel site while the two new greener electric arc furnaces are built.