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UK steel and aluminum stocks are in focus this evening after the Trump administration removed tariffs from both metals as part of a broader trade deal it signed with its greatest ally on Thursday.

British manufacturers at large will benefit from this trade deal as it effectively removes additional costs associated with exports to the US.

However, there are stocks that stand to particularly benefit from no tariff at all on aluminum and steel. These include Rio Tinto and Tata Steel.

Rio Tinto Plc (RIO)

Mining giant Rio Tinto, which has significant aluminum operations in the UK, could be a key beneficiary of the US-UK trade deal announced on Thursday.

Aluminum is widely used in industries such as automotive, aerospace, and packaging, and with US buyers no longer facing additional costs under the Trump administration, demand for the UK’s aluminum is expected to improve.

Rio Tinto Plc has been investing in sustainable aluminum production, including its low-carbon aluminum initiative, which could attract US buyers aiming to reduce their environmental footprint.

The removal of tariffs on aluminum provides RIO with an opportunity to expand its market reach and enhance profitability, making its stock an appealing option for investors anticipating growth in UK aluminum exports.

Note that Rio Tinto shares have lost more than 10% since late February.

So, they’re now relatively more attractive in terms of valuation as well.

Wall Street currently has a consensus overweight rating on RIO stock and sees over 35% upside in it on average.

A lucrative 6.98% dividend yield makes Rio Tinto all the more exciting to own in 2025.

Tata Steel Ltd (NSE: TATASTEEL)

Tata Steel UK, a subsidiary of Mumbai headquartered Tata Steel, operates major steel production facilities in the United Kingdom and is a key supplier of steel to global markets, including the US.

With tariffs listed as part of the US-UK trade deal the White House announced just hours ago, the company’s exports to American buyers are expected to rise, enhancing its revenue prospects.

Steel is a critical material for industries such as construction, automotive, and infrastructure, and reduced costs will make UK steel more attractive to US firms looking for quality alternatives.

Tata Steel UK has also been investing in greener steel production methods, which could align well with the demand for sustainable materials in the US.

Investors interested in capitalizing on this shift should keep an eye on Tata Steel’s performance, as increased US exports could boost the company’s overall profitability.

Much like RIO, Wall Street currently rates Tata Steel stock at “overweight” as well, with upside to about र154.25 ($1.79) on average, indicating potential for an 8.0% gain from here.

Note that Tata Steel is also a dividend stock that yields 2.51% at writing.

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