Shropshire metal manufacturer Bridgnorth Aluminium says Trump tariffs will hit US trade

The new tariffs came into effect on Wednesday (March 12), meaning US businesses importing aluminium and steel into the country now have to pay an extra 25% tax on them.

The UK Business Secretary has described Donald Trump’s decision to impose global tariffs on steel and aluminium as “disappointing” and said “all options” are on the table to respond in the national interest.

Bridgnorth Aluminium, which employs over 300 people at its Bridgnorth base, currently exports around 20% of its products to the United States - and says the new tariffs announced by US President Donald Trump could make the business "less competitive" than under current rules.

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

“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."

The company says it is working with the Government alongside trade bodies to lobby for a deal between the two countries which reduces or removes the import tax altogether.

Meanwhile Ruth Ross, chief executive of Shropshire Chamber of Commerce, warned of an "all-out trade war" - and called on the UK Government to negotiate a reduction in the tariffs as soon as possible. 

"This 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," she said.

“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.

“British Chambers of Commerce research shows that 63% of our manufacturing exporters were concerned about the impact of tariffs before their introduction. But this 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.”