The Aluminium Federation (ALFED) has confirmed that the 25% US tariffs on aluminium imports have officially come into force.

ALFED raise concerns for the future of the UK aluminium sector. Adding to this concern, the European Union's recently introduced counter-measures further heighten the threat of trade diversion, placing the UK at risk of becoming a destination for redirected aluminium products.

The US is one of the UK’s largest export markets, accounting for 10% of all aluminium exports in 2024, valued at around £225 million.

Some ALFED members have already reported a slowdown in US orders, with concerns over potential contract losses.

Additionally, the sharp rise in US Midwest aluminium premiums is encouraging increased exports of UK aluminium scrap. This poses a risk of significant domestic scrap leakage, undermining the UK’s recycling infrastructure and long-term sustainability objectives.

The introduction of counter-measures by the European Union has heightened the threat of trade diversion.

With the EU market now restricted, the UK faces the risk of becoming a destination for aluminium products that can no longer enter the US or EU.

This could result in an influx of lower-cost imports, creating an uneven playing field and destabilising domestic producers already contending with cost pressures.

ALFED CEO Nadine Bloxsome commented:

"The enforcement of US tariffs today is a critical moment for the UK aluminium industry. While the direct impacts are already being felt through reduced US orders and scrap export pressures, the additional risk of trade diversion due to EU countermeasures creates an even more serious challenge. We are concerned that without proactive safeguarding, the UK could face an influx of low-cost imports, threatening the competitiveness and stability of our domestic market."
"We welcome the fact that the Government has called on ALFED for support and information throughout this process. It is reassuring that any decisions will be made in full consultation with the industry. While the current non-retaliatory approach is understood, this is a fast- moving situation. ALFED will continue to provide real-time feedback and insights to ensure any future decisions are informed by accurate data and industry realities."