UK ‘would take cool-headed approach’ if Trump put tariffs on British steel
The UK will take a “cool-headed approach” if Donald Trump pushes ahead with tariffs on imports of British steel, Downing Street has said after talks between Sir Keir Starmer and the US president.
Mr Trump plans to put a 25% import tax on British steel from Wednesday as part of a series of measures to protect US firms.
The issue is understood to have been discussed in a call between the Prime Minister and Mr Trump on Monday.
Steelmakers have warned the tariffs will have “huge ramifications” for the industry in the UK.
‘Engaging’
The Prime Minister’s official spokesman said: “The UK and US have got a strong economic relationship. It’s based on fair and balanced, reciprocal trade and we’re engaging closely with the US administration to make the case for the UK to be exempt from proposed tariffs.
“And, more broadly, we’ve been very clear that when it comes to UK steel industry we remain prepared to defend the UK’s national interest where it’s right to do so.
“But we will continue to take a cool-headed approach to any speculation around tariffs.
“We’ve got a £2.5 billion commitment to invest to rebuild the UK steel industry and support communities now and for generations to come.”
Mr Trump has threatened to impose tariffs on other countries and then relented but he remains wedded to the overall idea of making the US rich through taxing imports.
Uncertainty
He has dismissed business concerns over the uncertainty caused by his planned tariffs against a range of countries, as well as the prospect of higher prices for consumers as a result of the increased costs to companies.
When Sir Keir visited the White House in February, Mr Trump suggested a “real trade deal” between the US and the UK could mean tariffs were not necessary.
In a statement after Monday’s call between the leaders, a Downing Street spokeswoman said: “The two leaders also spoke about the economic deal they had discussed at the White House and the Prime Minister welcomed the detailed conversations that had already happened to move this forward.”
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To provide a little bit of context to this story, I’ll point out that the UK applies a 25% tariff to steel imports, and that the EU also applies a 25% tariff to steel imports.
Not quite true, the UK maintained its standard tariff schedule for such imports – both the US and UK have tariff free quotas for one another. The UK, for example, has already exceed its TFQ for tin plated steel, and I think some long products, and those is currently tariffed at 25%, even before the Trump inauguration. TFQs have lots of benefits, Trump is basically getting rid of these
Tariff the orange bloated oaf back. He wont be at it for long, follow Canada’s lead, great work over there. the drop today so far on the stocks in the US are eye watering. tesla is tanking which is good.