UK not yet retaliating over ‘disappointing’ US steel tariffs
LONDON, United Kingdom (AFP) — The United Kingdom (UK) government said Wednesday that global United States (US) tariffs on steel and aluminium were “disappointing”, but stopped short of retaliating as it seeks a wider economic agreement with Washington.
“I will continue to engage closely and productively with the US to press the case for UK business interests,” Business and Trade Secretary Jonathan Reynolds said in a statement.
“We will keep all options on the table and won’t hesitate to respond in the national interest.”
It contrasts with the European Union, which said it would impose “countermeasures” from April 1 in response to US tariffs of 25 per cent on steel and aluminium imports for the biggest economy’s trading partners.
Reynolds said the UK is “focused on a pragmatic approach and… rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy”.
Prime Minister Keir Starmer last month met with US President Donald Trump in Washington to discuss the matter.
Trump signalled the potential for a “great” post-Brexit trade accord, one that Britain has been seeking since its departure from the EU at the start of the decade.
Following the meeting, British businesses voiced cautious optimism that the UK may have avoided the metals tariffs.
“We remain resolute in our support for UK industry,” Reynolds said Wednesday.
Britain exports about 10 per cent of its steel to the United States, shipping nearly £400 million worth there in 2023.
The UK’s steel industry body had described the tariff as a “devastating blow”.
Following Trump’s announcement of 25 per cent levies last month, the UK responded by unveiling a multi-billion-pound plan to protect its steel industry.
Starmer said the government was stumping up to £2.5 billion (US$2.7 billion) to help support the sector.
The Labour government also launched a consultation looking at how to “protect the steel sector from unfair trading practices abroad” and reduce high electricity costs.
While there is no expectation of a full free-trade deal being struck between the UK and US, February’s discussions have been viewed by many as clear progress.
Negotiations between the two countries broke down under former US president Joe Biden, on issues including Britain’s reluctance to open its borders to some American agricultural products.