Trump Imposes 25% Tariffs On Steel And Aluminium Imports – But UK Unlikely To Hit Back

Donald Trump has imposed a 25% import tax on steel and aluminium industries on countries around the world – including the UK.

But the British government is not expected to respond immediately with tariffs of its own, unlike the EU, which has confirmed its own taxes on US imports to the bloc will begin on April 1.

Business secretary Jonathan Reynolds said Trump’s move was “disappointing”, but said the UK was “rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy”.

He said the government would work with British companies affected by the steel tariffs.

Reynolds added: “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.”

Treasury minister James Murray also told Times Radio this morning the government wants to be “pragmatic” and “cool-headed” in its response, and will work with the US to come up with a solution.

The government estimates around 5% of UK steel exports and 6% of aluminium go to the US, although the aluminium industry says it actually accounts for 10% – meaning there is now tariffs on £225m worth of trade.

The US president’s move, which kicked in at 4am UK time, is an attempt to boost US steel and aluminium production, but there are fears it will only raise prices in the US, damage economic growth and escalate tensions with key trading partners.

The EU’s counter tariffs will hit 26 billion euros (£21.9bn) worth of US goods, although European Commission president Ursula von der Leyen said they “deeply regret this measure”.

“Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,” she said.

Australia branded the decision “entirely unjustified” while Canada, one of the US’s closest trading partners, said they would also retaliate.

Research company Oxford Economics said it had lowered US growth forecast for the year from 2.4% to 2%, although they still predicted it would outperform other major advanced economies over the next couple of years.

The American Iron and Steel Institute, representing US steelmakers, said the tax would create jobs and boost the domestic industry.

The group’s president Kevin Dempsey said: “AISI applauds the president’s actions to restore the integrity of the tariffs on steel and implement a robust and reinvigorated program to address unfair trade practices.”

But the director general of trade association UK Steel, Gareth Stace, said the move was “hugely disappointing”.

He said: “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.”

The Unite union has called on the government to act, with its general secretary Sharon Graham saying: “This is a matter of national security. Steel should be immediately designated as critical national infrastructure to properly protect it.”