Facing “unprecedented challenges,” the UK’s steel sector is rallying for domestic support as it confronts the dual threat of existing tariffs and a potential new expansion of US trade restrictions. The Community trade union and British Steel are urging the nation’s industrial sector to sign a pledge backing UK-made steel, a move that comes amid growing alarm over Washington’s “derivative” goods policy.
The UK already navigates a 25% US tariff on its steel, but the new fear centers on a growing list of manufactured goods containing steel that could also be hit with duties. The US has already listed 407 such “derivative” categories, and a new consultation suggests that list is about to get longer, potentially including items like windows and doors.
This policy of a “rolling list” creates a nightmare of uncertainty for exporters. Industry leaders across Europe have warned that the ad hoc nature of the expansions makes long-term planning impossible. According to Luisa Santos of BusinessEurope, this unpredictability makes it “very difficult to claim we have certainty” in the vital transatlantic trade corridor.
The chaotic environment is forcing firms into costly and inefficient practices. A striking example comes from Germany, where a motorcycle maker, unable to perfectly document its steel usage, overpays on tariffs as a defensive measure against catastrophic 200% penalties for reporting errors.
The call for a pledge to support UK steel is a direct response to this precarious situation. As trade bodies seek to reinforce the sector’s resilience, the UK government is simultaneously pressing Washington for answers. The entire European industrial landscape is watching closely, aware that the next US move could inflict significant further damage.