US aluminium tariff to hit supplier

A large metal manufacturer in Shropshire has said new tariffs on steel and aluminium entering the US will make it more difficult to trade.

Bridgnorth Aluminium (BA), which employs 330 people in the county, exports 20% of the goods it makes to the US.

President Donald Trump's tariffs on steel and aluminium came into effect on Wednesday, meaning US businesses bringing those products into the country now have to pay a 25% tax on them.

Ruth Ross, chief executive of Shropshire Chamber of Commerce, said the new export tax "plunges businesses, in both the US and UK, into a new age of uncertainty".

"These tariffs add another dimension to the global uncertainty we are all currently dealing with," said Adrian Musgrave, Head of Sales at BA.

"If there is no movement on the 25% rate, it will make trading with the US more difficult for us as a business, but it could also cause supply and cost issues for firms in America, too.

"For example, for a significant portion of our US sales, there is currently no US producer. This means there is no threat to domestic aluminium production, yet companies using our aluminium may soon be hit by rising costs," he added.

The company, which exports to 14 different countries, is hoping a trade deal can be struck between the UK and US, which would remove tariffs altogether or significantly reduce it from the 25% rate.

The chamber of commerce has also raised concern about the impact tariffs could have on other manufacturers that export to the US.

Ms Ross said products made with UK steel and aluminium were used in many supply chains in the US.

"Both sides will now be facing up to negotiations on how the burden of these new tariffs will affect businesses in both countries," she said.

"Tariffs mean prices and costs will inevitably go up and this is a lose-lose scenario for consumers, businesses, and economic growth.

"More tariffs are also on the agenda for the start of next month, which will add fresh uncertainty into the mix."

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