Prime Minister Sir Keir Starmer has stated that the UK will “keep all options on the table” in response to US President Donald Trump’s new tariffs on steel and aluminium imports, which came into effect this week.
The 25% levy on steel and 10% on aluminium will impact the UK’s £700 million annual metal exports to the US. Additionally, it will affect products made with steel and aluminium, which account for £2.2 billion, or about 5% of the UK’s exports to the US.
Sir Keir, who has been pushing for a trade deal and tariff exemptions, said the UK would take a “pragmatic” approach. However, opposition leaders have urged the government to adopt a more “robust” stance, following the EU and Canada’s lead in implementing countermeasures.
EU and Canada Hit Back with Retaliatory Tariffs
The European Union announced that it would impose tariffs on €26 billion (£22 billion) worth of US goods in response to the American measures. EU President Ursula von der Leyen described the move as “strong but proportionate”, stating that the EU remained open to negotiations.
The tariffs, targeting American products ranging from bourbon to motorcycles, will be partially introduced on 1 April and fully implemented by 13 April.
Canada also responded with its own set of countermeasures, further escalating tensions in global trade relations.
Impact on the UK’s Steel Industry
Industry leaders in the UK steel sector have expressed deep concerns over the impact of the US tariffs. Gareth Stace, director general of UK Steel, called the move “hugely disappointing”, warning that contracts have already been cancelled or put on hold.
The Community union has urged the UK government to introduce a tax on carbon-intensive steel, targeting imports from countries like China and India, which have higher environmental footprints. Meanwhile, Unite general secretary Sharon Graham has demanded decisive government action to protect the British steel industry.
There are fears that cheaper steel, originally intended for US markets, could be redirected to the UK, further pressuring domestic producers.
Political Reactions and US Economic Concerns
During Prime Minister’s Questions, Lib Dem leader Sir Ed Davey called on Sir Keir to “be more robust” in dealing with the US, similar to the EU and Canada.
Meanwhile, Conservative shadow business secretary Andrew Griffith criticized Labour for failing to negotiate exemptions, stating, “They can’t even get themselves in the room to negotiate with the US.”
In the US, Trump has defended the tariffs as a way to boost domestic steel and aluminium production. The American Iron and Steel Institute (AISI) supports the measures, claiming they will create jobs and strengthen US manufacturing.
However, critics argue the tariffs will raise costs for consumers and slow economic growth. The American Automotive Policy Council, which represents major car manufacturers like Ford, General Motors, and Stellantis, warned that the tariffs would increase costs for suppliers, leading to higher prices for vehicles.
Global Trade Uncertainty
This is not the first time Trump has imposed tariffs on steel imports. In 2018, during his first term, he introduced similar measures but later negotiated carve-outs for several countries.
The US remains a major importer of steel and aluminium, with key suppliers including Canada, Mexico, and Brazil. On Tuesday, Trump reversed a decision to double tariffs on Canada, following Ontario’s move to impose a surcharge on electricity exports to the US.
As the global trade dispute unfolds, concerns over a potential economic downturn have grown. US share prices dropped this week amid fears of a recession, as businesses brace for higher costs and potential supply chain disruptions.
With no exemptions granted to the UK, pressure is mounting on Sir Keir Starmer’s government to navigate this growing trade conflict while protecting British industry and jobs.
