UK-US trade agreement: a positive step for UK aluminium, but challenges remain

The Aluminium Federation (ALFED) welcomes the announcement that the 25% tariffs imposed on UK aluminium exports to the United States have now been removed as part of a new trade agreement between the UK and the US.

This long-awaited resolution marks an important moment for UK aluminium producers, who can now plan with more stability and rebuild commercial ties with American customers and supply chains. It is especially positive news for downstream sectors such as automotive and aerospace, where cost pressure and supply security remain critical.

However, there are still pressing challenges that require Government attention.

The UK aluminium recycling industry has been hit hard by the distortion caused by these tariffs. Exporting scrap aluminium to the US has become more financially attractive, driving up domestic prices and undermining the UK’s ability to retain high-quality secondary material for remelting and reuse. This ‘scrap leakage’ weakens the foundations of a viable circular economy and risks placing further pressure on UK decarbonisation goals.

While the removal of tariffs gives customers and manufacturers some breathing space, it should also serve as a wider signal to Government. Aluminium was one of the first sectors to be targeted with tariffs – a fact that reflects both its strategic importance and its vulnerability.

There has been almost no national mention of aluminium in public policy or the industrial press, despite its critical role in net zero, energy transition, transport, construction, and defence. The UK aluminium industry continues to face headwinds from high energy costs, tightening carbon regulation, and volatile market access, all while contributing billions to the economy and enabling low-carbon innovation across multiple sectors.

ALFED is calling on Government to:

• Recognise aluminium as a critical material in national industrial strategy
• Address scrap leakage by supporting closed-loop recycling and secondary metal retention
• Work directly with industry to ensure fair competition and defend against harmful trade practices
• Unlock aluminium’s potential as a catalyst for clean growth, circular economy models, and high-value manufacturing

We are grateful to the Department for Business and Trade for its close engagement with ALFED and our members on the tariff issue. We now urge policymakers to build on this momentum and work with us to strengthen the long-term competitiveness of UK aluminium.

Note: This article has been issued by ALFED and has been published by AL Circle with its original information without any modifications or edits.