UK disappointed at US tariffs, Business Secretary says

The UK Business Secretary has described Donald Trump’s decision to impose global tariffs on steel and aluminium as “disappointing” and said “all options” are on the table to respond in the national interest.

Britain has resisted taking immediate retaliatory action against the move, while the European Union has already announced it will introduce counter-measures on American goods.

The tariffs came into effect at midnight in the US, around 4am GMT, and raise a flat duty on steel and aluminium entering America to 25%.

Jonathan Reynolds said: “It’s disappointing the US has today imposed global tariffs on steel and aluminium.

“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.”

National interest

“I will continue to engage closely and productively with the US to press the case for UK business interests. We will keep all options on the table and won’t hesitate to respond in the national interest,” he added.

Brussels said counter-measures to the tariffs, which would affect around 26 billion euros (around £22 billion) of EU exports, will be introduced in April “to defend European interests”.

In a statement, the European Commission described the US measures as “unjustified trade restrictions”.

President of the commission Ursula von der Leyen said: “As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros.”

UK officials have stressed the need for a “cool-headed approach”, after last-ditch efforts to persuade Mr Trump to spare British industry from his global tariffs appeared to have failed.

Gareth Stace, director-general of trade association UK Steel, branded the Trump administration’s move “hugely disappointing”.

Battle

He added: “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. What’s more, the EU is also pushing ahead with trade restrictive action that will amplify the impact of US tariffs.”

Mr Stace added: “It is essential that the UK Government not only continues efforts to negotiate exemptions with the US but also takes decisive action to bolster our trade defences. We greatly appreciate all the efforts that have been made so far and will continue working closely with our Government to secure the best possible outcome.”

The aluminium industry body earlier warned the looming taxes are already having an effect, while the Unite union urged the Government to immediately designate British-produced steel as critical national infrastructure.

Nadine Bloxsome, chief executive of the Aluminium Federation, said: “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. This not only weakens the UK’s recycling capacity but risks undermining our sustainability objectives and circular economy targets.

“Additionally, the uncertainty around potential trade diversion is placing considerable pressure on UK producers, especially as semi-finished goods may flood the UK market at lower costs.”

“Our Government must act decisively to protect the steel industry and its workers following the announcement of US tariffs,” Unite general secretary Sharon Graham said.

“This is a matter of national security. Steel should be immediately designated as critical national infrastructure to properly protect it.”

Uncertainty

William Bain, head of trade policy for the British Chambers of Commerce (BCC), said the decision plunges both countries “into a new age of uncertainty”.

But he warned against a series of “tit-for-tat” tariffs that could “easily spiral into an all-out trade war”.

“We must keep talks alive and retaliatory tariffs should only be used as a means of last resort. If talks succeed, it would be a win-win, bringing welcome stability and pro-growth economic conditions for both sides.”

The issue was discussed in a call between Prime Minister Sir Keir Starmer and Mr Trump on Monday, and ministers and officials have been in frequent talks with their US counterparts since the measures were first proposed in February.

The Government estimates around 5% of UK steel exports and 6% of aluminium exports by volume go to the US, although the aluminium industry body said the US market accounts for 10% of exports – valued at £225 million.

Mr Trump has previously threatened to impose tariffs on other countries and then relented, but he remains wedded to the overall idea of making the US richer through taxing imports.