Holding Our Breath: Wire & Cable Industry Braces for Impact Amid Tariff Chaos

The reintroduction of Trump-era steel and aluminium tariffs has reignited global trade tensions, casting a long shadow over the UK and EU wire and cable industry. As of June 2025, the U.S. has doubled Section 232 tariffs to 50% on most steel and aluminium, imports excluding the UK for now, which retains a 25% rate under an interim economic agreement. Despite the temporary exemption, the broader atmosphere of unpredictability is already taking a toll on manufacturers, many of whom rely heavily on exports to North America.

For UK and European businesses, the impact is not merely financial but deeply operational. Members of the IWMA have described a sharp rise in business anxiety as companies struggle to quote prices with any certainty. One member explained that they are being pushed to provide quotations on accelerated timelines, only for clients to delay projects indefinitely. By the time orders are confirmed, the cost landscape has already shifted – leaving manufacturers exposed or out of pocket. “We’re quoting fast, but when the orders finally land, raw material prices have changed, or tariffs have moved again. It’s not sustainable,” one member of the IWMA Executive Management Committee shared.

This instability is having tangible effects. In April 2025 alone, UK exports to the U.S. dropped by £2 billion – a staggering 33% decline that analysts have directly attributed to the new tariffs. For manufacturers in the wire and cable sector, where steel, aluminium, and copper are essential inputs, this downturn is compounding existing pressures. Some IWMA members report that their cost base has become increasingly fragile, with industrial electricity prices in the UK now roughly 150% higher than in the U.S., and 40–50% more expensive than in France or Germany. One UK-based firm said its sales were down 10% year-on-year, but that didn’t tell the full story: “We’re carrying over overdue business each month, which makes the books look healthy, but the reality is our actual new sales are way down.”

In Germany, the picture is similarly bleak. One company reported a 30% drop in sales after the April tariff reinstatement, with little hope for recovery before the end of the summer. Rising labour costs, tighter safety regulations, and a growing energy gap are forcing companies to consider major structural changes. Some have already relocated manufacturing operations out of the UK entirely, opting for EU-based plants to sidestep the dual complications of Brexit and tariffs. Others are exploring shipping materials to the UK for onward export to the U.S. in the hope of gaining preferential tariff treatment under bilateral trade agreements. However, this strategy runs into a major regulatory hurdle: rules of origin.

The rules of origin determine the “nationality” of a product – not simply where it was last shipped or handled. These rules are critical for the application of:

• Preferential tariff treatment (e.g., under trade agreements)
• Anti-dumping, safeguard, and countervailing duties
• Trade statistics and reporting
• Labelling and marking compliance
• Quotas and procurement regulations

Unless a product is substantially transformed in the UK (i.e., undergoes significant manufacturing or value-added processes), it does not qualify for UK origin status. The key metric under WTO and WCO guidance is the “ad-valorem” (value-added) rule, which calculates how much of the product’s value was added in the country of claimed origin. This is based on the ex-works value – the factory price including:

• The cost of all materials used
• All manufacturing-related costs

Attempts to change commodity codes for tariff advantage face similar restrictions. These codes are internationally regulated, and reclassification requires strong evidence of a different product scope or manufacturing purpose.

Meanwhile, companies with exposure to emerging markets have reported markedly different fortunes. In India, where cable demand is booming thanks to rapid infrastructure development and the rise of new players like the Adani Group, IWMA members are expanding production capacity and increasing their workforce. One company now employs over 260 people at its Indian facility and is already planning its next expansion phase.

Brazil also shows promise, with companies preparing for a potential trade agreement between Mercosur and the EU. If passed, the agreement could eliminate import duties on key industrial goods and unlock significant new investment opportunities.

Yet even those seeing growth abroad are feeling the squeeze at home. Uncertainty remains the dominant theme, with one manufacturer explaining how silver prices in London spiked unexpectedly following tariff announcements, driven by market speculation and reduced inflows of raw materials. The ripple effects are wide and hard to manage, particularly when combined with wage increases, insurance hikes, and lingering post-Brexit logistics challenges.

“We used to be two weeks ahead in our production planning,” another member explained. “Now we’re struggling to keep up, even after working through a backlog for months.”

Despite the gloom in parts of Europe, the industry is not without hope. There is strong underlying demand, particularly driven by the explosive growth in data centres (you can read more on the growth of data centres globally in our latest edition of the IWMA Insider). These facilities, each consuming as much energy as a small town or half a nuclear power plant, require massive quantities of specialised cable. Including edge and enterprise sites, the total number of data centres globally continues to rise, with some analysts estimating over 100 new facilities per year. However, it is the large-scale hyperscale centres – around 50–60 annually—that are driving the bulk of demand for power and specialised cabling. The cable required to support these installations – from power distribution to high-speed fibre – is extensive, and IWMA members are already reporting a surge in quotations for related equipment and materials.

Still, this optimism is tempered by the challenges of conversion. “We’re quoting a lot, but we’re not seeing enough of it turn into real orders,” said one supplier. Others note that their teams are “too busy doing nothing”—handling paperwork, resubmitting quotations, and negotiating unclear costs with no guarantee of revenue.

One manufacturer summed it up with a grim smile: “It used to be fun running a company. Now it’s a constant battle – rising costs, uncertain pricing, and the endless wait for someone to finally say yes.”

In this environment, strategy and adaptability have become the most valuable commodities. Some IWMA members are investing in in-house component manufacturing, others in digital services or energy-efficient plant upgrades. For many, the priority is simply staying afloat until clarity returns to the global trading system. Whether through more stable U.S. policy, the success of EU–South America trade negotiations, or a long-overdue easing of Brexit-era barriers, the industry is holding its breath for relief.

While the Trump tariffs are only part of a broader storm, alongside inflation, energy crises, and labour shortages, they are a particularly sharp example of how political decisions can upend industrial planning. The IWMA will continue to gather feedback, advocate on behalf of its members, and help the global wire and cable community weather this period of uncertainty. As one member aptly put it, “We’re ready for the world to wake up. But we can’t afford to keep holding our breath.”