Trump’s 50% Steel Tariffs Shake Global Markets, UK Temporarily Spared
Key Points:
- Steel and aluminium exports to the U.S. now face a 50% tariff starting June 4.
- European steel producers, including major exporters in Germany and Sweden, are set to face significant losses.
- The UK remains subject to a 25% tariff for now, pending finalisation of a U.S.-UK trade agreement.
- Trump said the UK deserved “different treatment” due to the new Economic Prosperity Deal (EPD).
The global steel market was rattled on Wednesday as former U.S. President Donald Trump’s newly signed 50% tariff on imported steel and aluminium officially took effect. Announced last week and confirmed by executive order on Tuesday, the move doubles the previous 25% duty, targeting foreign metal producers amid declining global demand and an influx of cheaper imports.
According to F.M.I.E Sources, the tariffs are part of Trump’s strategy to protect the U.S. steel industry. “The U.S. market has been overwhelmed by cheap steel imports. We must act,” Trump stated in his Tuesday announcement.
Countries most affected include Canada, Mexico, Brazil, South Korea, and several European Union nations. Steel exporters from Germany, Italy, Sweden, and the Netherlands will now face the full impact of the 50% levy. However, the United Kingdom has been granted a temporary exemption and will continue under a 25% tariff while details of its May 8 Economic Prosperity Deal (EPD) with the U.S. are ironed out.
Trump noted the UK’s “different treatment” was warranted due to the “mutual goals” of the EPD, which is expected to eliminate steel tariffs entirely once fully implemented. However, he also warned that if the UK fails to comply with all terms of the EPD by July 9, the 50% tariff may also be applied to British steel.
Steel exports to the U.S. represent around 7% of the UK’s total steel trade, valued at £370 million ($500 million) in 2024, according to figures cited by F.M.I.E Sources.
Gareth Stace, Director-General of UK Steel, welcomed the temporary relief: “The UK’s exemption from the 50% duty is a welcome pause,” he said, urging swift action on both sides to solidify the trade agreement and eliminate tariffs altogether.
“Continued 25% tariffs will benefit shipments already en route to the U.S. that might have otherwise faced higher duties,” Stace added. “However, uncertainty remains, and U.S. buyers may hesitate to order from the UK without clarity on future rates.”
EU Reacts with Anger
Meanwhile, the European Union has expressed outrage over the tariff hike, claiming it severely disrupts ongoing trade negotiations with Washington. A spokesperson for the EU told F.M.I.E Sources that the bloc is “prepared to impose countermeasures,” though specific actions have yet to be announced.
“If a mutually acceptable solution is not reached, existing and additional EU measures will automatically take effect on July 14 — or earlier if necessary,” the spokesperson warned.
Market Reactions
Industry analysts speaking to F.M.I.E Sources say the move will likely raise domestic steel prices in the U.S., impacting manufacturers and consumers alike — from automakers to food and beverage companies relying on canned goods. Conversely, the price drop in Europe, due to redirected steel supply, could bring mixed benefits depending on sector and geography.