There was no last minute reprieve.
Despite a last ditch phone call to the White House, Keir Starmer was not able to secure concessions for the UK as Donald Trump imposed a 25% tariff on all aluminium and steel coming into the country.
The British government has not given up hope.
Today, ministers confirmed they would not retaliate. Instead, they called for “cool heads”, saying they would be taking a “pragmatic approach.” In the background, the government is still pinning its hopes on a trade deal and a spate of retaliatory tariffs would undermine that effort.
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Unlike the EU, the UK does not have a trade surplus with the US. It is therefore not in Donald Trump’s direct firing line and ministers are hoping they can manoeuvre along the sidelines to secure concessions for the UK.
That was something the president was open to during his first term in office.
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After imposing tariffs on aluminium and steel imports, Mr Trump eventually granted exemptions to several trading partners, including Canada and Mexico. In 2022, Joe Biden agreed to partially lift Trump’s tariffs on UK aluminium and steel.
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It might be harder this time round.
The president is taking a stronger stance and has already rejected similar pleas from allies, including the Australians. During Trump’s first administration they were successful, arguing that the US had a trade surplus with the country and it provided key materials for the US defence industry.
It means the pleas of organisations like UK Steel, the industry trade body, may fall on deaf ears.
“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,” said Gareth Stace, director-general of UK Steel.
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Trump has repeatedly criticised China for dumping cheap steel in the global market to beat competitors. This is an issue the UK industry has been railing against too. While Donald Trump’s latest bout of tariffs do discriminate, imposing a higher levy on China, no one has escaped scotch free.
The US is the UK’s second largest steel export market. Tariffs will undoubtedly hurt an industry and a workforce that is already struggling with the transition to green manufacturing.
Mr Stace added: “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. “
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The industry fears higher US tariffs will lead to a drop in orders, meaning the UK would have to soak up the global surplus in steel, driving prices down even further. It could also hurt consumers. Higher US manufacturing costs could drive up global prices.
That’s something the British Chambers of Commerce has sound the alarm over.
“Tariffs mean prices and costs will inevitably go up and this is a lose-lose scenario for consumers, businesses, and economic growth,” it declared.
