Prime Minister Keir Starmer has ruled out immediate counter-tariffs if Donald Trump imposes a 25% tariff on UK steel and aluminium imports to the United States.
Following a phone call with Trump on Monday, Starmer said his government is prepared for the tariffs to take effect at 4 a.m. UK time on March 12, but emphasized a measured response rather than retaliatory trade measures.
UK Pushes for Exemption
Downing Street reiterated the strong economic relationship between the UK and US, emphasizing that trade must remain fair and balanced. A government spokesperson stated that the UK is actively engaging with the US administration to argue for an exemption.
The UK government has already committed £2.5 billion to rebuild the domestic steel industry, ensuring long-term sustainability for British steelworkers and manufacturing communities.
Industry Concerns Over Trade Impact
Jonathan Reynolds, Trade and Business Secretary, has been lobbying US officials, including Commerce Secretary Howard Lutnick, to prevent the tariffs. UK steel exports to the US account for 5% of total British steel exports, while aluminium makes up 6%.
Industry leaders warn that the tariffs could disrupt global trade and harm UK manufacturers. Gareth Stace, Director General of UK Steel, described the move as a “sledgehammer to free trade”, with severe implications for both the UK and international steel sector.
Global Backlash Against US Tariffs
The European Union and Japan have also urged the US to reconsider. The EU Trade Commissioner, Maroš Šefčovič, warned that Brussels is prepared to retaliate if exemptions are not granted. Meanwhile, Japan’s Trade Minister, Yoji Muto, traveled to Washington for last-minute talks but failed to secure an exemption for Japanese steel exports.
The US administration justified the decision by citing concerns over global steel overcapacity, projected to reach 630 million tonnes by 2026, as well as China’s role in flooding markets with cheap steel. However, UK Steel argues that these tariffs unfairly target US allies, pointing out that UK steel exports to the US were 14% lower in 2023 than in 2018, when previous tariffs were introduced.
