UK home revamps could become cheaper in unexpected consequence of Trump tariffs

British industry leaders have warned US tariffs on steel and aluminimum imports would have “devastating” consequences for the domestic steel sector, potentially stifling exports and leading to further job cuts.

But amid continuing uncertainty in global markets, some analysts estimate the surge in supply could bring unexpected short-term benefits for consumers – particularly when it comes to construction.

It remains unclear whether the UK will be directly targeted by the threat of tariffs touted by Donald Trump. The US is Britain’s second largest export market after the European Union (EU).

But estimates by the UK’s National Institute of Economic Data and Research (NIESR) indicate that the 25 per cent tariffs threatened by the US on steel imports from Mexico and Canada alone could reduce UK GDP growth by 0.1 percentage points in 2025.

Some economists say the tariffs could have lead to Chinese-made steel being diverted from US markets and sold at lower-than-production costs, or “dumped,” into the UK market.

This could make some of the products used to build or redevelop homes in the UK – such as cladding, aesthetic features, exteriors and gates more affordable, industry experts have said.

What would tariffs mean for UK consumers?

Driven by the heavy US tariffs, steel-producing countries will need to find new markets, and a way to do that would be by lowering prices.

“That might be bad for UK steel producers, but good for UK users of steel,” said Peter Levell, deputy research director at the Institute for Fiscal Studies (IFS).

But he added: “There’s a lot of uncertainty there. We don’t know what exactly is going to happen – is this the start of something bigger or something else?”

The price of raw steel has been rising since the pandemic and tariffs could bring them back to 2020 levels, according to Steve Turner, executive director of the Home Builders Federation.

However, this doesn’t necessarily mean the prices of all construction materials will decrease as many – like rebar, a steel rod embedded in concrete to enhance its strength – have already been produced and existing stocks will need to be used up first, he said.

Steel rebar cost £406 per tonne in December 2019, but had risen to £445 per tonne by January 2025, according to UK Government data.

Structural steel, which is used for beams and plates, is also 35 per cent more expensive now than before Covid.

The price of bathroom taps and valves has risen by 25 per cent, while screws are 26 per cent more expensive than they were in 2019.

The price of energy, labour and materials used in the production of steel, including manganese, nickel, chromium, have risen too. This has affected the UK “considerably”, due to higher labour and energy costs, compared to those from China, Turner said.

The result of the tariffs seeing the UK’s steel supply rise may make certain products cheaper – including cladding and gates, Turner said.

Kitchen fixings may also eventually become a little cheaper but that would take a few years as the current stocks need to be exhausted.

While some have warned that cheaper products, especially those from China, could mean lower quality, Turner said this doesn’t necessarily have to be the case. It could also make additional higher-quality products more affordable.

Most steel beams come from South Korea and Mexico, and not China. “So we might actually end up with a better product at a lower price for those countries that perhaps have got a better reputation for finished products, like Turkey, South Korea, Germany, Canada and Japan,” Turner said.

Impact on UK industry and manufacturers

There is a downside for British steel production if cheap steel from abroad floods the market, the HBF boss warned.

“We may see product prices of steel go down, which is great for construction, but it means that our UK steel production, both raw and finished products, is impacted and they have to close down,” Turner said.

“That’s not good for the construction industry because British products are high quality,” he said, “and we’d like to buy domestically if we can.”

More than 70 per cent of the construction products used in the UK are manufactured domestically. The Government should focus on expanding new technologies so that more products can be produced domestically, Turner said.

UK Steel’s director general Gareth Stace has said it would be “deeply disappointing” if Trump decides to target the UK steel industry, given its “relatively small production volumes compared to major steel nations.”

“At a time of shrinking demand and high costs, rising protectionism globally, particularly in the US, will stifle our exports and damage over £400m worth of the steel sector’s contribution to the UK’s balance of trade,” Stace said.