UK steel vital for the country’s green economy
SMEs housebuilders are worried the current global tariff war will create economic uncertainty and damage the UK steel industry.
- UK steel vital for supporting the country’s low-carbon economy
- Raw materials for making steel could drop in price post US tariffs
- Steel is a crucial housebuilding product
US tariffs create uncertainty for smaller builders in the UK
The SME housebuilding industry is anxiously waiting to see what effectsUS import tariffs will have on building material supplies and costs.
The US president Donald Trumpimposed a tariff of 25 per cent on imported steel and aluminium from the 12th March 2025.
Housebuilders fearthis could lead to cheap steel imports from China which would be a further blow to the UK’s embattled steel industry.
Germany, Spain and the Netherlands are the UK’s top steel suppliers but access to domestically produced steel is seen as important given the volatility of global markets.
The Federation of Master Builders, FMB, Brian Berry said: “A prolonged period of economic uncertainty risks major harm to small builders both in terms of products imported from abroad, and the wider impact on the markets, for example with regards to steel manufacturing.”
However, the National Federation of Builders, NFB, has said despite the economic uncertainty there might be some positive effects from US import tariffs on steel.
NFB policy and market insight head Rico Wojtulewicz said: “UK and global industries may see some bright spots as the production of steel uses raw materials such as manganese, nickel, chromium, and if they are unaffordable to US companies, in the short-term new markets at lower prices will need to be found.”
The Homebuilders Federation, HBF, said it was too early to tell how US tariffs would affect the industry.
HBF communications director Steve Turner said: “The majority of materials are sourced internally from within the UK, with a very limited amount from the US. Any impact from tariffs specifically, either positive or negative, also needs to be balanced against the broader economic conditions.”
UK steel vital for the country’s green economy
The government wants the UK’s steel industry to survive so it can support a low-carbon economy for producing wind turbines, electric vehicles and energy-efficient products and infrastructure.
In housebuilding, steel is used for reinforcing concrete foundations, walls and beams to support roofs.
Brokers Hank Zarihs Associates said development finance lenders were keen for the housebuilding industry’s supply chains to be robust with greater domestic production of key products such as steel.
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