U.S. President Donald Trump has introduced a 25% import tax on steel and aluminium, affecting countries worldwide, including the UK.
While the European Union (EU) has swiftly responded with retaliatory tariffs on U.S. goods set to take effect on April 1, the British government is taking a more measured approach.
UK Business Secretary Jonathan Reynolds expressed disappointment over the decision but emphasized that the country is actively negotiating a broader economic deal with the U.S. to reduce trade barriers.
“We are rapidly working towards an agreement that will eliminate additional tariffs and benefit UK businesses,” he stated, reaffirming the government’s commitment to supporting affected industries.
UK Calls for Diplomacy Over Retaliation
Unlike other major trade partners, the UK is not rushing to impose counter-tariffs. Treasury Minister James Murray stressed the importance of a “pragmatic” and “cool-headed” response, aiming to work closely with the Trump administration to find a resolution.
The UK government estimates that around 5% of its steel exports and 6% of its aluminium exports go to the U.S. However, the aluminium industry argues that the actual figure is closer to 10%, putting approximately £225 million worth of trade under the new tariffs.
Despite concerns over economic strain, Trump’s administration insists that the tariffs will revitalize domestic U.S. steel and aluminium production. However, critics argue that the move could lead to increased costs, hinder economic growth, and strain relations with key allies.
Global Backlash and Economic Uncertainty
The EU has been vocal in its opposition, with European Commission President Ursula von der Leyen stating, “Tariffs are taxes. They are bad for business and even worse for consumers.” The EU’s counter-tariffs will target €26 billion (£21.9 billion) worth of U.S. goods, escalating trade tensions.
Other global leaders have also condemned the decision. Australia called the tariffs “entirely unjustified,” while Canada, a long-standing U.S. trade ally, has vowed to retaliate.
Research firm Oxford Economics has already revised its U.S. growth forecast downward from 2.4% to 2%, warning that prolonged trade disputes could weaken economic performance.
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However, the American Iron and Steel Institute has applauded Trump’s tariffs, claiming they will create jobs and strengthen the domestic steel industry.
Meanwhile, in the UK, the response from industry leaders has been one of frustration. UK Steel’s Director General Gareth Stace criticized the move, stating, “President Trump must surely recognize that the UK is an ally, not a foe.”
Unite union leader Sharon Graham has urged the UK government to take immediate action, calling for steel to be designated as critical national infrastructure.
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