The construction sector has welcomed a \u201chistoric\u201d deal with the US over tariffs that will remove import taxes on steel and aluminium.<\/p>\n
It comes amid fears UK construction growth would be delayed because of the fallout from President Donald Trump\u2019s tariff hikes.<\/p>\n
On Thursday (8 May), Trump said: \u201cThe US and the UK have been working for years to make this deal. It is the first of a number of agreements on trade.\u201d<\/p>\n
US secretary of commerce Howard Lutnick said British steel will be safeguarded as part of the deal.<\/p>\n
\u201cWith steel and aluminium, their steel business has been destroyed by people dumping steel into their market,\u201d he said.<\/p>\n
\u201cThe British government as part of this deal will nationalise it. It will be part of a resurgence of steel and aluminium into the US and will save thousands of jobs.\u201d<\/p>\n
The UK steel industry \u2013 which was on the brink of collapse<\/a> just weeks ago \u2013 will no longer face tariffs.<\/p>\n \u201cPrime minister Sir Keir Starmer negotiated the 25 per cent tariff down to zero, meaning UK steelmakers can carry on exporting to the US,\u201d the Department of Trade said in a statement.<\/p>\n \u201cThis follows last month\u2019s intervention from the prime minister to take control of British Steel to save thousands of jobs in Scunthorpe.\u201d<\/p>\n Starmer said it will protect thousands of jobs and said it was \u201cjust the start\u201d.<\/p>\n \u201cThis historic deal delivers for British business and British workers protecting thousands of British jobs in key sectors including car manufacturing and steel,\u201d he said.<\/span><\/p>\n UK Steel director general Gareth Stace said the move will offer major relief.<\/p>\n \u201cThe UK government\u2019s cool-headed approach and perseverance in negotiating with the US clearly paid off. This deal will offer major relief to the UK steel sector at a time when it is battling numerous other challenges, not least global overcapacity, high energy costs and weak demand,\u201d he said.<\/p>\n \u201cThe impact of US steel tariffs is not limited to UK exports, but also the damaging consequences of trade diversion from other markets. Bolstering the UK\u2019s trade defences is therefore also paramount.<\/p>\n \u201cThe government must use this momentum to deliver a bold and comprehensive steel strategy that will set our sector on a sustainable footing once and for all. This must include long-term effective trade defences, competitive electricity prices, robust carbon leakage protection and supportive public procurement.\u201d<\/p>\n Kelly Boorman, national head of construction at consultancy RSM UK, said the announcement \u201csignals a potentially important step\u201d for the UK\u2019s construction industry.<\/p>\n \u201cIn recent years, the sector has struggled with rising energy costs, labour shortages, and rising employers\u2019 national insurance contributions. The added uncertainty of tariffs had also seen material prices spike, squeezing profit margins and disrupting the supply chain,\u201d she said.<\/p>\n \u201cHowever, the removal of tariffs will help to combat growing cost pressures for steel and aluminium manufacturers, who have struggled with higher energy prices.\u201d<\/p>\n