UK disappointed at US tariffs, Business Secretary says

The UK Business Secretary has described Donald Trump’s decision to impose global tariffs on steel and aluminium as “disappointing” and said “all options” are on the table to respond in the national interest.

Britain has resisted taking immediate retaliatory action against the move, while the European Union has already announced it will introduce counter-measures on American goods.

The tariffs came into effect at midnight in the US, around 4am GMT, and raise a flat duty on steel and aluminium entering America to 25%.

“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.”

“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,” he added.

Brussels said counter-measures to the tariffs, which would affect around 26 billion euros (around £22 billion) of EU exports, will be introduced in April “to defend European interests”.

President of the commission Ursula von der Leyen said: “As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros.”

UK officials have stressed the need for a “cool-headed approach”, after last-ditch efforts to persuade Mr Trump to spare British industry from his global tariffs failed.

The Government estimates around 5% of UK steel exports and 6% of aluminium exports by volume go to the US, although trade bodies for both industries claim that is an under-estimate of the impact.

Steelmakers have warned the tariffs will have “huge ramifications” for the industry in the UK, with the US the second largest export market behind the European Union.

Trade body UK Steel said that in 2024 the UK exported 180 thousand tonnes of semi-finished and finished steel to the US, worth £370 million, some 7% of the UK’s total steel exports by volume and 9% by value.

Exports include specialised steel used by the US Navy on its submarines, with the Government arguing that the tariffs will push up costs for American taxpayers, in an attempt to persuade Mr Trump to change course.

The aluminium industry said the US market accounts for 10% of exports – valued at £225 million.

He added: “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.”

Nadine Bloxsome, chief executive of the Aluminium Federation, said: “This could severely destabilise the competitiveness of UK aluminium manufacturers, who are already contending with high energy costs and complex regulatory challenges.”

Unite general secretary Sharon Graham said: “Our Government must act decisively to protect the steel industry and its workers following the announcement of US tariffs.

“This is a matter of national security. Steel should be immediately designated as critical national infrastructure to properly protect it.”

Community union assistant general secretary Alasdair McDiarmid said: “These US tariffs on UK steel exports are hugely damaging and they threaten jobs.

“For the US it’s also self-defeating, as the UK is a leading supplier of specialist steel products required by their defence and aerospace sectors.”

William Bain, head of trade policy for the British Chambers of Commerce (BCC), said the decision plunges 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.”