Britain to demand exemptions from Trump's steel tariffs
Britain will seek exemptions on Donald Trump's sweeping steel tariffs, the Business Secretary has indicated, saying the UK is in a strong position to secure leniency from the US.
Jonathan Reynolds said that he would raise the tariffs issue as soon as the US Senate confirms the appointment of Howard Lutnick, Mr Trump's pick for commerce secretary.
Mr Reynolds added that while there was 'significant overcapacity' around the world in steel, the UK was not the cause of it, and that the US defence industry relied heavily on British imports.
'I think there's a basis for a discussion,' he said.
Mr Trump announced 25pc tariffs on worldwide steel and aluminium imports on Monday, saying they would come 'without exceptions or exemptions' and that the UK would not escape them.
'We have a huge deficit with the UK. Big difference,' Mr Trump said.
When asked about the tariffs on Thursday, Mr Reynolds said: 'Specifically on the steel and aluminium issue, there is significant overcapacity around the world. I understand that [and] we have similar concerns around that, but we're not the cause of that.
'Our steel sector is very small relative to the size of our economy. I think it should be bigger. If you look at the kind of products we are sending to the US in steel, aluminium, they're either quite sensitive defence ones from Forgemasters in Sheffield, or they're parts of the wider US manufacturing supply chain.
'So I'll be seeking to engage as soon as the Senate confirms my counterparts on the policies they put forward.
'I believe we can engage with them on their agenda. And I do feel that where there are concerns about the global steel and aluminium industries, very strong cases. The UK is not the problem within that. I think there's a basis for a discussion.'
Mr Trump introduced a tariff on steel in 2018, and Joe Biden relaxed the restrictions in 2022, with some UK exporters also securing exemptions. UK Steel, the industry lobby group, called this week's announcement 'a sledgehammer to free trade'.
Mr Reynolds said it was not in the national interest to put tariffs on Chinese electric vehicles, saying that retaliation from Beijing would damage the UK carmaking industry.
He was speaking after he announced a new 'strategic steer' for the Competition and Markets Authority that will urge it to speed up investigations and focus on UK issues, in contrast to many of the big tech investigations the regulator has launched in recent years.
Mr Reynolds suggested the UK might need fewer regulators in future as part of a red tape cutting drive, saying: 'We've also got to genuinely ask ourselves the question, have we got the right number of regulators?'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
31 minutes ago
- Glasgow Times
Badenoch to call for end to oil and gas windfall tax and ban on new licences
The energy profits levy was put in place under the previous Conservative government but extended when Labour entered power. Designed to fund interventions to bring down household bills, the policy has been criticised by those in the industry. Speaking at the Scottish Conservative conference in Edinburgh on Friday, Mrs Badenoch is expected to tout the oil and gas sector, accusing the UK Government of 'killing' it, claiming 'renewing our party and our country means standing up for our oil and gas industry'. She will add: 'When the oil and gas windfall tax, the energy profits levy, was brought in, the oil price was near a historic high, at the exact time as energy bills for the British people were sky-rocketing. 'But there is no longer a windfall to tax. It has long gone. And the longer this regressive tax on one of our most successful industries remains, the more damaging it becomes. 'Labour have extended and increased this tax. They are killing this industry.' If the measure remains in place to 2030 as intended, Mrs Badenoch will say 'there will be no industry left to tax'. She will add: 'So, today, I say enough. Labour must remove the energy profits levy. Labour must speed up the process of replacing it with a system that rewards success and incentivises investment. 'Because we shouldn't have this energy profits levy at all. 'We must scrap the ban on new licences. 'We must overturn the ban on supporting oil and gas technology exports. Kemi Badenoch will say the energy profits levy should end (PA) 'And we must champion our own industry. 'We must let this great British, great Scottish industry thrive, grow and create jobs – ensuring our energy security for generations to come, driving growth and making this country richer in the process.' Mrs Badenoch will address her first Scottish party conference as leader on Friday while her counterpart north of the border Russell Findlay will deliver his inaugural address on Saturday. Responding to Mrs Badenoch, Simon Francis of the End Fuel Poverty Coalition said her comments were 'out of touch', adding: 'Even with the windfall tax in place, the energy industry made over £115 billion in profits in 2024 alone. 'Meanwhile, average household energy bills remain hundreds and hundreds of pounds higher than they were before the energy crisis started. 'While the Government is right to be consulting on reform of the windfall tax, maintaining a profits levy could help fund home upgrades and a social tariff which would bring down energy bills for the most vulnerable in society.' SNP MSP Kevin Stewart said: 'The Tories wrecked our economy, presided over soaring household bills and ripped Scotland from the EU against our will. 'And now they're lurching further to the right as they haemorrhage votes to Nigel Farage. 'This weekend will be an important reminder of how Westminster has failed Scotland. Only the SNP is offering hope and a brighter future as an independent nation.' Scottish Labour deputy leader Jackie Baillie said: 'While the Tories and SNP let energy workers down by failing to plan for the future, Scottish Labour is committed to taking action towards reaching net zero, creating jobs and cutting energy bills. 'The Tories are on the side of oil and gas giants rather than working Scots, but Scottish Labour will work with the UK Government and use devolved powers to deliver a just transition for the industry. 'With Kemi Badenoch desperately attempting to rally the few remaining Scottish Tories, it seems like it won't be long until they can fit all of their MSPs in a single taxi.'
NBC News
32 minutes ago
- NBC News
Yellen expects Trump's tariffs will hike inflation to 3% year over year
Former Treasury Secretary Janet Yellen predicts President Donald Trump 's tariffs will cause prices to rise and average household income to fall, despite a slowing trend in the U.S. inflation rate. 'I would expect inflation, on a year-over-year basis of this year, to shoot up to at least 3%, or slightly over, because of the tariffs,' Yellen said Thursday on CNBC's ' Money Movers.' The Biden-era Cabinet secretary made that prediction even as she noted that when it comes to Trump's tariffs, 'There remains a huge degree of uncertainty about exactly what is going to go into effect.' But 'I definitely expect that we're going to see them impact pricing,' she said. That will lower average household income, Yellen added. 'The most recent and optimistic estimate I've seen suggested that the average household will see on the order of $1,000 reduction in income,' due to tariffs and their knock-on effects, she said. 'It could be greater than that, depending on how things play out with the tariff program,' she said. The comments came as data from the U.S. Bureau of Labor Statistics has shown the inflation rate rising less than expected in recent months. Trump has pointed to that trend to fuel his latest attacks on Federal Reserve Chair Jerome Powell to lower interest rates. At the White House later Thursday, Trump slammed Powell as a ' numbskull.' Trump's allies, meanwhile, have argued that tariffs do not contribute to inflation. Yellen, who also served as Fed chair from 2014 to 2018, said the central bank should right now 'worry about the possibility of second-round effects or wage increases or inflation expectations feeding into continued inflation.' The Fed does not have a 'good handle on how the tariffs are going to affect either spending in the labor market or inflation,' she said. 'So I would expect them to remain firmly in latency territory,' she added, suggesting that the Fed is likely to continue its wait-and-see approach.
Scottish Sun
32 minutes ago
- Scottish Sun
Historic Brit clothes shop beloved by the Royal Family which supplied Europe's top fashion houses is forced to close
ROYAL SHAME Historic Brit clothes shop beloved by the Royal Family which supplied Europe's top fashion houses is forced to close A HISTORIC British clothing store once beloved by the Royal Family and known for supplying Europe's top fashion houses has shut down for good—leaving 28 people out of work. Otterburn Mills, based in Otterburn, Northumberland, with a second store in Rothbury, has gone into liquidation following a series of financial blows. 4 The business was further hit by the sudden loss of a key supplier, soaring operating costs Credit: Otterburn Mill 4 Those affected are now being supported with access to the Redundancy Payments Service Credit: Otterburn Mill The 18th-century mill-turned-retail business struggled to recover after the Covid pandemic, with shop visitor numbers failing to return to pre-2020 levels. The business was further hit by the sudden loss of a key supplier, soaring operating costs, and a shift in consumer shopping habits away from the high street. The company, which famously made a pram rug for Queen Elizabeth II in 1926, had recently been put up for sale. However, no buyer could be found, and business recovery experts FRP were brought in to oversee the winding down of operations. FRP confirmed that the company has ceased trading and 28 employees have been made redundant. Those affected are now being supported with access to the Redundancy Payments Service. Antonya Allison, joint liquidator and director at FRP, said: 'Otterburn Mills was a well-known and respected local business that had built a loyal customer base over many years. Unfortunately, the retailer was faced with an array of challenging headwinds that many high-street brands will recognise and, despite our best efforts to identify it has not been possible to find a viable way forward for the business. Our focus is now on supporting those affected and working to ensure the best possible outcome for creditors through the liquidation process.' The business also had debts owed to HMRC. We live next to a Sainsbury's where 'defeaning' building work is ruining our lives – we haven't slept for a week FRP added that it is 'working with all stakeholders to ensure an orderly wind down of the business and to maximise returns for creditors.' Otterburn Mills rose to prominence under William Waddell, the son of a Borders wool manufacturer, and built a reputation for its tweeds and woven fabrics. These high-quality materials were once used by major European fashion houses including Dior and Balmain. The site was transformed into a retail clothing store in the 1990s by Euan Pringle, who preserved much of the original mill machinery as part of the shop's heritage display. The closure adds to a growing list of British retail losses in recent months. The Original Factory Shop has begun closing down sales at several branches across Worcestershire, Dorset, Durham and other parts of the UK, as part of its wider restructuring. Poundland, recently sold to a US-based firm for just £1, is facing the potential closure of around 100 of its 800 UK shops, with job losses expected. House of Fraser is also shutting down its Worcester city centre store, where a 20 per cent off closing down sale has already begun ahead of its final trading day in September. Meanwhile, fashion chain River Island is drawing up a radical rescue plan to avoid collapse, which includes shutting some stores. Its Banbury branch is set to close at the end of June, and more may follow as the retailer attempts to recover from a £33.2 million loss last year. Industry experts say these closures reflect broader trends, including rising energy bills, business rates, and staffing costs. Many shoppers have moved online or prefer to visit large retail parks over traditional town centres. The Centre for Retail Research has warned that more than 17,000 UK stores could shut their doors in 2025, putting up to 202,000 retail jobs at risk. The loss of Otterburn Mills, a once-thriving symbol of British textile heritage, underlines the deepening crisis for both independent shops and national retail chains across the UK. Without meaningful support or change in consumer habits, more historic names could be lost from the high street for good. RETAIL PAIN IN 2025 The British Retail Consortium predicted that the Treasury's hike to employer NICs would cost the retail sector £2.3billion. Research published by the British Chambers of Commerce earlier this year shows that more than half of companies planned to raise prices by early April. Separately, the Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020." 4 Many shoppers have moved online or prefer to visit large retail parks over traditional town centres Credit: Otterburn Mill
