Keir Starmer has warned the US that “all options are on the table” as the UK mulls how it will respond to Donald Trump slapping 25% tariffs on imports of steel and aluminium.
The prime minister said he was “disappointed” at the move by the US president, which kicked in at 4am today.
Trade unions have warned that jobs could be lost in the British steel industry and have called on the government to “act decisively” in response.
At prime minister’s questions, Starmer said: “I’m disappointed to see global tariffs in relation to steel and aluminium.
“We will take a pragmatic approach.”
He said the UK was negotiating a tariff-free economic deal with America which would solve the problem.
In the meantime, the PM said “we will keep all options on the table” when it comes to potential retaliation against the US.
The government estimates around 5% of UK steel exports and 6% of aluminium go to the US, although the aluminium industry says it actually accounts for 10%.
Trump’s move is an attempt to boost US steel and aluminium production by making foreign imports more expensive, but economists have warned it will push up prices for consumers and escalate tensions with key trading partners.
Unlike the UK, the European Union has already announced that it will impose retaliatory tariffs on US imports.
Gareth Stace, director general of 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.”
Sharon Graham, general secretary of the Unite union, 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.”
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