US tariffs threaten UK machinery exports

The Construction Equipment Association (CEA) has warned that new US tariffs on UK exports of construction machinery and parts could cost manufacturers hundreds of millions of pounds each year.

From 18 August, US duties under Section 232 now apply to finished machines and key components exported from the UK. Goods are charged at 25% on their steel and aluminium content, but if the metal content cannot be proven, duties are levied on the full machine value — creating what the CEA describes as a serious risk of overpayment and penalties.

The tariffs cover not just excavators, mixers and other finished equipment, but also essential parts such as buckets, blades and mixer components, widening the impact across UK supply chains. For complex machines built from thousands of parts, many with no detailed material breakdowns from suppliers, compliance could be “extremely difficult in practice”, the CEA said.

The US is one of the UK’s most important markets for construction equipment, worth over £1.5 billion in 2023. By mid-2025, shipments were already down 40% in value compared with the same period in 2024, raising concerns of a further sharp decline as the new tariffs take effect.

“Our immediate focus is to protect UK manufacturers by minimising disruption and additional costs,” said Viki Bell, CEA chief executive. “We are pressing for clarity on the UK position, for practical compliance routes that reflect the realities of complex machinery, and for exemptions where appropriate.”

The CEA is working with the Department for Business and Trade, Make UK and other partners to lobby for urgent solutions. Companies affected are being asked to share evidence of the tariffs’ impact via the association’s online form, to strengthen the case presented to government.

Relevance to the UK concrete sector

While the tariffs directly affect construction machinery, they are also significant for the UK concrete construction sector, which depends on imported and exported equipment:

• Concrete mixers, pumps and batching plants are in scope of the new tariffs, affecting UK manufacturers.
• Component parts such as buckets, blades and wear plates for plant used in quarrying and batching are also covered.
• Higher costs and reduced exports could weaken UK equipment suppliers, limiting competition and raising prices for contractors and concrete producers.
• Any slowdown in machinery exports risks impacting the UK’s precast, ready-mix and infrastructure supply chains, where international trade and service parts are critical.