UK Exporters Face Major Blow as US Imposes Twenty Five Percent Steel and Aluminium Tariffs

British manufacturers are facing an unexpected surge in costs after President Trump introduced a 25 per cent tariff on finished goods containing steel and aluminium exported to the United States. Industries spanning construction machinery to automotive parts are set to feel the impact, with leading firms such as JCB identified as particularly exposed to these sudden changes.

The Midlands-based construction giant, along with other exporters of pumps, compressors, and components for renewable energy systems such as wind turbines, must now navigate a sharply different trading environment. The Construction Equipment Association confirmed that from 18 August, finished machinery and crucial components of UK origin will be subject to a 25 per cent tariff on arrival in the US market—a move that could add hundreds of millions annually to manufacturers’ bills. For other non-UK exporters, the duty rate rises to 50 per cent.

These measures tip what was previously considered a stable trading relationship—underpinned by a 10 per cent tariff arrangement—into uncertainty. The tariff escalation follows US government action under section 232, broadening the reach of duties in response to pressure from American steel producers. Jeffrey Kessler, US under-secretary of commerce for industry and security, claimed the expansion would reinforce competitiveness and security for the domestic metals industries.

British exporters must now provide detailed proof of metal content on entry to the United States or face duty charges on the entire value of machinery, creating confusion for companies with complex supply chains involving thousands of parts, many sourced without explicit breakdowns. Viki Bell, chief executive at the Construction Equipment Association, highlighted the risk of overpayment or penalties, noting that compliance will be extremely difficult to achieve in practice.

The British Chambers of Commerce warns that these new tariffs may strain long-standing customer relationships and increase pressures on supply chains already contending with rising inflation and costs. William Bain, head of trade policy, has called for urgent government intervention to secure clarity, exemptions where possible, and practical compliance methods that reflect real-world complexities.

Pressure is mounting on the UK’s Department for Business and Trade to negotiate more favourable terms and provide support to manufacturers adjusting to this turbulent backdrop. Without swift action, companies exporting to the US risk being caught in a “tariff trap” at a time when stability is needed most.