While businesses in the UK were hoping that negotiations were continuing with the United States over reducing tariffs on steel and aluminium exports, the US Department of Commerce has extended and increased tariffs in a move that will cost British manufacturers hundreds of millions of pounds.
In a statement, which can be found here, the Department of Commerce announced the addition of 407 product categories to the list of “derivative” steel and aluminium products covered by sectoral tariffs.
As a result, it stated, the steel and aluminium content of these products being imported from the UK will be subject to a duty rate of 25% (other countries face a 50% tariff). Taking immediate effect, the imposition of these raised tariffs will affect goods already in transit.
The products concerned range from wind turbines, mobile cranes, compressors and bulldozers to marine engines and motorcycles. Also included are shampoo and perfumes which have aluminium in their packaging.
US Under Secretary of Commerce for Industry and Security, Jeffrey Kessler, said: "Today’s action expands the reach of the steel and aluminium tariffs and shuts down avenues for circumvention — supporting the continued revitalisation of the American steel and aluminium industries.”
The Federation of Small Businesses (FSB) said that these restrictions should have been sorted out in the “post-deal negotiations” after the recent agreement between US President Donald Trump and Sir Keir Starmer and called on the two sides to act swiftly to give SME exporters more clarity.
