US President Donald Trump has dragged the UK into his global trade war after slapping a 25 per cent tariffs on worldwide steel and aluminium imports.
The decision comes despite Sir Keir Starmer’s visit to the White House last month, with the Prime Minister handing Trump an invite for a state visit.
Downing Street officials said the UK will take a “cool-headed” approach to a potential trade dispute.
“You won’t get immediate counter-tariffs,” a source said.
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On a phone call with the US President, Starmer pleaded with Trump to exempt the UK from this latest 25 per cent tariff hit, The Financial Times reports.
Business Secretary Jonathan Reynolds referred to Trump’s decision to hit British businesses with this extra tax as “disappointing” and said “all options” are being considered.
So far, the UK has resisted launching immediate retaliatory action against the move, while the European Union has already announced it will introduce counter-measures on American goods.
Reynolds said: ” “We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.
“Meanwhile, we remain resolute in our support for UK industry. This Government is working with affected companies today, and I back industry’s application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers.”
According to the EU, Trump’s latest round of tariffs are expected to impact around £22billion of EU exports.
The EU is taking action against Trump’s trade war
REUTERS
Gareth Stace, the director-general of trade association UK Steel, slammed the Trump administration’s move “hugely disappointing”.
Stace explained: “President Trump must surely recognise that the UK is an ally, not a foe.
“Our steel sector is not a threat to the US but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade.
“These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape.”
Nadine Bloxsome, the chief executive of the Aluminium Federation, added: “The UK aluminium sector is already seeing the first impacts of these tariffs.
“The sharp rise in US premiums has created new incentives for scrap exports, raising the risk of significant domestic scrap leakage.
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“This not only weakens the UK’s recycling capacity but risks undermining our sustainability objectives and circular economy targets.”
According to Government estimates, around five per cent of UK steel exports and six per cent of aluminium exports by volume go to the US.
However, the aluminium industry body said the US market accounted for 10 per cent of exports – valued at £225million.
Trump has previously threatened to impose tariffs on other countries and then partially reversed the extent of his tax raid, such as his dispute with Canada and Mexico last week.