'All options on the table' after new Donald Trump tariff hits the UK

Yahoo

12-03-2025

The Business Secretary says 'all options' are on the table after Donald Trump slapped tariffs on global steel and aluminium - amid fears for UK industry.
Firms are braced for the impact of new tariffs which came into effect at midnight in the US, which raise a flat duty on steel and aluminium entering the United States to 25 per cent.
The UK is yet announce any retaliatory measures - but the European Union says it will introduce counter-measures on American goods next month to 'defend European interests'.
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Jonathan Reynolds said: "It's disappointing the US has today imposed global tariffs on steel and aluminium.
"We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.
"Meanwhile we remain resolute in our support for UK industry. This Government is working with affected companies today, and I back industry's application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers."
The EU says the new tariffs are expected to affect around 26 billion euros - or £22 billion - of EU exports.
British officials are calling for a 'cool-headed approach' in response to Mr Trump's latest move, with last-ditch efforts to persuade the president to spare British industry seemingly ending in failure - but the Business Secretary says he is willing to act 'in the national interest'.
Mr 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."
Gareth Stace, the director-general of trade association UK Steel, branded the Trump administration's move '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.
"These tariffs couldn't come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape. What's more, the EU is also pushing ahead with trade restrictive action that will amplify the impact of US tariffs."
Mr Stace added: "It is essential that the UK Government not only continues efforts to negotiate exemptions with the US but also takes decisive action to bolster our trade defences. We greatly appreciate all the efforts that have been made so far and will continue working closely with our Government to secure the best possible outcome."
The aluminium industry body earlier warned the looming taxes were already having an effect while the Unite union urged the Government to immediately designate British-produced steel as critical national infrastructure.
Nadine Bloxsome, chief executive of the Aluminium Federation, said: "The UK aluminium sector is already seeing the first impacts of these tariffs.
"The sharp rise in US premiums has created new incentives for scrap exports, raising the risk of significant domestic scrap leakage. This not only weakens the UK's recycling capacity but risks undermining our sustainability objectives and circular economy targets.
"Additionally, the uncertainty around potential trade diversion is placing considerable pressure on UK producers, especially as semi-finished goods may flood the UK market at lower costs."
"Our Government must act decisively to protect the steel industry and its workers following the announcement of US tariffs," Unite general secretary Sharon Graham said.
"This is a matter of national security. Steel should be immediately designated as critical national infrastructure to properly protect it."
William Bain, head of trade policy for the British Chambers of Commerce (BCC), said the decision plunged both countries 'into a new age of uncertainty'.
But he warned against a series of "tit-for-tat" tariffs that could "easily spiral into an all-out trade war".
"We must keep talks alive and retaliatory tariffs should only be used as a means of last resort. If talks succeed, it would be a win-win, bringing welcome stability and pro-growth economic conditions for both sides."
The issue was discussed in a call between Sir Keir Starmer and Mr Trump on Monday, and ministers and officials have been in frequent talks with their US counterparts since the measures were first proposed in February.
The Government estimates around 5% of UK steel exports and 6% of aluminium exports by volume go to the US, although the aluminium industry body said the US market accounted for 10% of exports – valued at £225 million.
Mr Trump has previously threatened to impose tariffs on other countries and then relented, but he remains wedded to the overall idea of making the US richer through taxing imports.