US tariffs on steel and aluminium hit UK manufacturers

Industry leaders urge government to intervene after the US increases tariffs to 25 percent on steel and aluminium, reversing prior expectations of a lower rate.

US tariffs on steel and aluminium hit UK manufacturers

The United States has raised the tariff on hundreds of products that contain steel or aluminium to 25 percent, affecting UK exporters to the US. The move, announced recently, could add hundreds of millions of pounds in extra costs for British manufacturers each year. The rising charges touch sectors from construction machinery to automotive parts and reach across the supply chain.

JCB, the Midlands based digger maker, is highlighted as a potential hard-hit business. Other affected areas include renewables equipment makers, especially in the wind turbine supply chain, along with producers of pumps, compressors, and even furniture. Industry groups warn of significant risks and are urging the UK government to step in, noting that tariffs between the UK and US had previously been assumed to be about 10 percent under the Trump administration.

The tariff jump shows how quickly international policy can ripple through a modern economy. UK manufacturers have spent years building resilience through diversified suppliers and new markets; a sudden 25 percent fee on inputs and finished goods tightens margins and could force price increases. The episode also exposes gaps in long-range planning for post-Brexit trade.

This could push policymakers to seek relief measures or exemptions, while business leaders weigh cost pressures against the need to stay competitive abroad. In the bigger picture, the move underscores how contingent and fragile global supply chains remain, and how swiftly policy can alter investment sentiment in manufacturing and energy sectors.

Highlights

Markets will monitor government moves as the policy landscape in transatlantic trade shifts