America has introduced 25% tariffs on exports of UK steel and aluminium. So what does it all mean for the Shropshire manufacturing sector, and related industries?

William Bain, head of trade policy at the British Chambers of Commerce, said: “This is a difficult day for trans-Atlantic trade and plunges businesses, in both the US and UK, into a new age of uncertainty. 

“Products made with UK steel and aluminium play an important part in many supply chains in the US. Both sides will now be facing up to negotiations on how the burden of these new tariffs will affect businesses in both countries. 

“Despite this action, UK firms will want to keep trading with their customers and clients in the US and vice versa. Our commercial, investment and trading relationships remain strong. 

“Tariffs mean prices and costs will inevitably go up and this is a lose-lose scenario for consumers, businesses, and economic growth. More tariffs are also on the agenda for the start of next month which will add fresh uncertainty into the mix.”

Bridgnorth Aluminium operates the only fully integrated aluminium coil rolling plant in the UK and employs 330 people in Shropshire.

The company sells 20% of its volumes into the US and the introduction of aluminium and steel tariffs will create uncertainty and, potentially, makes the business less competitive than the current system of quota and exemptions.

Adrian Musgrave, head of sales at Bridgnorth Aluminium, said: “These tariffs add another dimension to the global uncertainty we are all currently dealing with.

“If there is no movement on the 25% rate it will make trading with the US more difficult for us as a business, but it could also cause supply and cost issues for firms in America too.

“For example, for a significant portion of our US sales, there is currently no US producer. This means there is no threat to domestic aluminium production, yet companies using our aluminium may soon be hit by rising costs.

“What would we like to see? A deal between the UK and the US that removes tariffs all together or significantly reduces it from the 25% rate. This is something we are championing with the Department for Business and Trade and key manufacturing bodies, such as the Aluminium Federation (ALFED). Confederation of British Metalforming and Make UK.

 “We are grateful for the engagement of the UK government and the manufacturing associations, who are all lobbying hard on our behalf.”

William Bain added: “BCC research shows that 63% of our manufacturing exporters were concerned about the impact of tariffs before their introduction. 

“But today’s setback does not mean we have reached the end of the road in terms of negotiations. Tariffs can be lifted at any time. 

“Businesses will be looking to the UK government to continue dialogue, with the US, to resolve this situation and restore certainty for firms, which has been badly lacking over recent weeks. 

“Against this background, a series of tit-for-tat tariffs could easily spiral into an all-out trade war and would do the UK little benefit. 

“We must keep talks alive and retaliatory tariffs should only be used as a means of last resort. 

“If talks succeed, it would be a win-win, bringing welcome stability and pro-growth economic conditions for both sides.”