The Department for Business & Trade (DBT) has confirmed to ALFED that, for now, UK aluminium exports to the United States will continue to face a 25% tariff.
DBT’s formal line remains: “We are continuing to work closely with our US partners to secure a positive outcome for UK industry that creates certainty, protects skilled jobs and supports growth. Thanks to the strength of the UK-US partnership, the UK is still the only country to benefit from a preferential 25% tariff on steel and aluminium exports to the US, avoiding the global tariff of 50%, reinforcing the UK’s position as a trusted source of high-quality steel and aluminium. We will continue to stand up for British industry and the communities that rely on it, as part of our Plan for Change.”
Against this backdrop, it appears that UK-US aluminium trade has stayed resilient. In the full 2024 calendar year, total UK exports to the US were 35,547 tonnes valued at £133.5m. For January-July 2025 alone, exports already total 34,418 tonnes valued at £96.7m. In relative terms, the year-to-date tonnage has reached roughly 97% of last year’s volume while the value stands at around 72%, indicating sustained physical flows with lower average unit values so far in 2025.*
Within the mix, HS 7602 (aluminium waste and scrap) has risen sharply. In 2024, the UK exported 2,164 tonnes of aluminium scrap to the US, valued at £3.42m. In January-July 2025, the UK has already shipped 11,466 tonnes valued at £15.48m – an increase of roughly 430% by volume and 353% by value versus the whole of 2024. Scrap’s share of total UK aluminium exports to the US has therefore climbed from about 6.1% of tonnage (2.6% of value) in 2024 to roughly 33.3% of tonnage (16.0% of value) so far in 2025.*
The most plausible driver of this shift is the rise in the US Midwest regional premium, which, coupled with the fact that scrap was not initially captured by the US measures, created an arbitrage opportunity. Figures suggest that UK and European material has been diverted to the US to capture higher prices, tightening domestic supply and pushing UK scrap prices higher – at times towards primary metal levels.
This is part of a broader global phenomenon: strong Asian demand and significant overseas investment in recycling continue to pull UK feedstock abroad, making access to scrap more challenging for domestic recyclers and complicating investment decisions even as scrap remains central to decarbonisation across packaging, automotive, construction and aerospace.
Comment from ALFED
Nadine Bloxsome, CEO, Aluminium Federation: “ALFED recognises the confirmation that UK aluminium exports to the United States remain subject to a 25% tariff at this time. We have worked closely with the Department for Business & Trade to present the UK sector’s position in detail, and we acknowledge that the UK continues to face a preferential 25% rate relative to the 50% global tariff applied elsewhere. The interaction of this policy environment with a higher US Midwest premium has re-routed scrap flows, reinforcing cost and supply pressures for UK recyclers. Our priority is predictable, competitively fair access that reflects the UK’s high environmental, quality and compliance standards and our leadership in recycled-content, low-carbon aluminium. We will continue to work with Government and members to minimise unintended distortions, support investment and skilled jobs, and ensure companies can plan with confidence while discussions with the United States continue.”
ALFED will continue to monitor tariff developments and export dynamics closely, publish detailed HS-code tables for members and remain in active dialogue with DBT.
Members with exposure to US trade are encouraged to review pricing and contractual assumptions on the basis of the 25% rate and to share anonymised evidence with ALFED so we can strengthen the sector’s case in ongoing policy engagement.
*Reporting across 7601, 7602, 7603, 7604, 7605, 7606, 7607, 7608, 7609, and 7610 Commodity Codes and data provided by Trade Data Monitor Ltd
