UK Aluminium industry braces for impact as US tariffs set to take effect

The Aluminium Federation (ALFED) has today raised serious concerns about the incoming 25 per cent tariffs on aluminium imports into the US, set to take effect on 12th March 2025.

Image Source: ALFED

Following extensive discussions with the UK Department for Business and Trade (DBT) and Sarah Jones MP, Minister of State at both the Department for Energy Security and Net Zero and the Department for Business and Trade, ALFED has outlined the significant challenges already facing the UK aluminium sector and the potential long-term implications for the industry.

Immediate Concerns and Sector Impact

 The US is a vital export market for UK aluminium, accounting for 10 per cent of all exports in 2024, valued at £225 million. ALFED members have already reported early signs of market disruption. These include a noticeable slowdown in US orders, apprehension around potential contract losses, and concerns that semi-finished aluminium products destined for the US could be diverted into the UK market.

The sharp rise in US Midwest aluminium premiums has also led to increased demand for UK aluminium scrap exports. Although the tariffs do not directly impact scrap, the heightened premiums are encouraging a shift in supply, posing a risk of significant domestic scrap leakage. This threatens to undermine the UK’s recycling infrastructure and long-term sustainability objectives.

Commenting on the Situation, Nadine Bloxsome, CEO of ALFED, said:

 “The UK aluminium sector is already seeing the first impacts of these tariffs. The sharp rise in US premiums has created new incentives for scrap exports, raising the risk of significant domestic scrap leakage. This not only weakens the UK’s recycling capacity but risks undermining our sustainability objectives and circular economy targets.”

“Additionally, the uncertainty around potential trade diversion is placing considerable pressure on UK producers, especially as semi-finished goods may flood the UK market at lower costs. This could severely destabilise the competitiveness of UK aluminium manufacturers, who are already contending with high energy costs and complex regulatory challenges.”

Government Collaboration and Next Steps

 ALFED has welcomed the ongoing dialogue with the DBT and Minister Sarah Jones, with the commitment that the Federation will be part of discussions around trade divergence and safeguarding measures.

“We recognise the complexity of this situation and are committed to working with the Government and international stakeholders to mitigate risks and protect our sector,” said Bloxsome. “We have already seen the importance of government engagement, and ALFED stands ready to support discussions that ensure the long-term resilience of UK aluminium manufacturing.”

Proposing an Aluminium Alliance

 In the call with the Minister, ALFED also highlighted the importance of creating a dedicated Aluminium Alliance – a structured approach similar to the UK’s Steel Council.

“The aluminium sector is integral to the UK’s net-zero ambitions and high-value manufacturing future,” Bloxsome stated. “A dedicated Aluminium Alliance would ensure a strategic, collaborative approach to supporting the sector, identifying opportunities, and strengthening the UK’s global competitiveness. We would welcome the Government’s support in developing this initiative and have already begun in our efforts to rally the sector and our members.”

Ongoing Commitment

 ALFED remains committed to close collaboration with government, industry partners, and international stakeholders. This includes contributing to ongoing trade discussions, supporting domestic recyclers, and ensuring that the UK’s aluminium sector continues to thrive in the face of global challenges.

Note: This press release, issued by ALFED, is published as received without edits from AL Circle.