Wake Up to Money Tariff Twist
Jun 4, 2025
Gareth Stace, Director of UK Steel, and Rowan Crozier, CEO of Brandauer, dive into the recent tariff changes impacting the UK steel industry. They discuss the complexities of UK-US trade relations and the potential repercussions for businesses amidst shifting tariffs. The conversation also highlights successful manufacturing innovations, like a new contract in Egypt’s razor market. Additionally, they address the ongoing economic uncertainty and its effects on public services, especially NHS funding, alongside the excitement surrounding the Nintendo Switch 2 launch.
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UK Spared from 50% Steel Tariff
- The UK currently pays a 25% tariff on steel exports to the US, temporarily spared the 50% tariff the rest of the world faces.
- US steel manufacturers plan to increase production but cannot meet all demand quickly, thus prices rise for importers and consumers.
Tariffs Cause Industry Uncertainty
- Paying a 50% tariff in the US would have caused UK steel orders to be cancelled or delayed.
- The 25% tariff is tough but manageable, creating uncertainty businesses dislike especially as the deal to remove tariffs fully is pending.
UK Steel Market Import Reliance
- UK steel imports fill 70% of domestic demand due to uncompetitive factors like high electricity costs.
- Without tighter trade defences, the UK risks a surge of cheaper steel imports undermining local producers.