THE European Union has said it will impose retaliatory measures on US goods after president Donald Trump’s tariffs on steel and aluminium came into force early on Wednesday morning.
Britain has resisted imposing immediate retaliatory action against the move, while the European Union has already announced it will introduce counter-measures on American goods.
The group will be implementing counter tariffs on $28 billion (£21.6bn) worth of goods starting on April 1.
UK industries are braced for the impact of the tariffs, which came into effect at midnight in the US, around 4am GMT, and raise a flat duty on steel and aluminium entering America to 25%.
A Treasury minister has said the UK is going to “reserve our right to retaliate” but will seek a “pragmatic” approach in response to global tariffs imposed by the US,
Exchequer secretary to the Treasury James Murray said: “We’re not going to retaliate immediately in that way.”
He said the tariffs were “disappointing” but “we want to take a pragmatic approach, and we’re already negotiating rapidly toward an economic agreement with the US, with the potential to eliminate additional tariffs.”
Murray later told Sky News: “Well, we’re in a very different position than the EU as a result of the Prime Minister’s trip to Washington last month.
“The UK and the US have been negotiating rapidly for an economic agreement, and so we’re in a position where that negotiation is ongoing and these global tariffs, if you like, have landed in the middle of that work. So we don’t want to be pushed off course by this.
“We want to carry on with our rapid negotiation toward an economic agreement, because we think that’s in the best interest of British businesses and the British public.”
Gareth Stace, the director general of trade association UK Steel, branded the Trump administration’s move “hugely disappointing”.
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.”
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 had earlier warned the looming import taxes were already having an effect.
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.
“This could severely destabilise the competitiveness of UK aluminium manufacturers, who are already contending with high energy costs and complex regulatory challenges.”
