Unlock the White Home Watch publication free of charge
Your information to what the 2024 US election means for Washington and the world
The UK stated it was “disappointing” that the US imposed tariffs on British metal and aluminium imports, however stopped wanting asserting retaliatory measures because it promised to take a “pragmatic strategy” it believes may shelter it from future levies.
“It’s disappointing the US has as we speak imposed world tariffs on metal and aluminium,” stated Jonathan Reynolds, enterprise and commerce secretary, after a 25 per cent levy on metal and aluminium got here into power in a single day.
“We’re targeted on a realistic strategy and are quickly negotiating a wider financial settlement with the US to get rid of extra tariffs and to learn UK companies and our economic system.”
However regardless of not instantly retaliating, he added: “We’ll maintain all choices on the desk and received’t hesitate to reply within the nationwide curiosity.”
The UK’s determination was starkly completely different from the EU, which instantly hit the US with €26bn of retaliatory tariffs on American items.
Commerce physique UK Metal warned the tariffs “couldn’t come at a worse time” because the business is already dealing with excessive vitality prices and sluggish demand.
The calculation in London is that the US tariffs, which can add £100mn to the price of UK metal exports, should not sufficiently big to set off a full scale response, which might inflame relations in Washington.
British officers say Prime Minister Sir Keir Starmer and Reynolds hope that an “financial deal” with Washington — initially based mostly on co-operation in areas equivalent to expertise and synthetic intelligence — may take Britain out of the road of fireplace in what might be an escalating transatlantic commerce struggle.
That proposed settlement was mentioned by Starmer and President Donald Trump on the White Home final month, however it’s removed from clear whether or not it may be negotiated, or whether or not in the end it is going to be ample to spare Britain from additional tariffs.
Final month Trump instructed Starmer on the White Home he thought the UK and US may find yourself with a “actual commerce deal” with out tariffs and referred to as the prime minister a “robust negotiator”.
Starmer urged Trump to not impose new metal tariffs on Britain in a cellphone name over the weekend and Reynolds made comparable pleas to his US counterpart Howard Lutnick, however to no avail.
Britain’s softly-softly strategy to the Trump commerce struggle, enabled by the UK’s exit from the EU and its widespread business coverage, can be seen warily in Brussels, particularly as Starmer is looking for to “reset” relations with the EU within the coming months.
Within the brief time period Britain’s response to the US metal and aluminium tariffs can be targeted on wider authorities assist for the sector, together with a plan to chop the vitality payments of heavy business. “We stay resolute in our assist for UK business,” Reynolds stated.
He stated the federal government was additionally backing business’s software to the Commerce Cures Authority — an arm’s size physique — to “examine what additional steps could be vital to guard UK producers”.
Britain already has some “safeguards” in place to guard its metal business from low cost imports of some merchandise above a sure stage — with tariffs of 25 per cent — that are in place till June 2026.
Reynolds stated: “I’ll proceed to interact intently and productively with the US to press the case for UK enterprise pursuits. We’ll maintain all choices on the desk and received’t hesitate to reply within the nationwide curiosity.” He stated the federal government had dedicated as much as £2.5bn to assist rebuild the sector.
