Donald Trump's tariffs have wrecked havoc on trade globally (Image: PA/Getty)
Keir Starmer has vowed that "all options are on the table" for Britain to fight back against Donald Trump’s trade war over tariffs. The Prime Minister warned of UK retaliation after being dragged into paying the US President’s “disappointing” levies.
His vow followed Mr Trump’s decision to heap 25% tariffs on all steel and aluminium imports into the US from Wednesday. MPs urged Sir Keir and his Business Secretary Jonathan Reynolds to “toughen up” and strike back. The European Union responded immediately by announcing trade counter-measures, hitting American goods with retaliatory levies. Speaking in the Commons, Sir Keir said: “I’m disappointed to see global tariffs in relation to steel and aluminium. We will take a pragmatic approach.”
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The UK is “negotiating an economic deal which covers and will include tariffs if we succeed,” he told MPs.
“But we will keep all options on the table.”
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Sir Keir’s comments came in response to Liberal Democrat leader Sir Ed Davey, who called for the UK to be “more robust” with the US President “like the Europeans and like the Canadians”.
The Government plans to carve out a trade deal between the UK and US will likely feature at meetings Mr Reynolds has in Washington DC next week.
Liberal Democrat Deputy Leader and Treasury Spokeswoman Daisy Cooper MP said: "Being repeatedly kicked by the other side and doing nothing is not an effective negotiating position. The Business Secretary needs to toughen up.
"Meanwhile, the Conservatives would roll over and beg Trump for a bad trade deal that sells out British farmers and our NHS.
"Enough is enough. We must act from a position of strength, standing up for British steel and the UK economy through retaliatory measures."
Britain has not been snubbed by Mr Trump’s global trade war, Downing Street insisted on Wednesday.
Asked if the Prime Minister felt his efforts to negotiate a deal with the US had been snubbed by the introduction of the levy, the Prime Minister’s official spokesman said: “No. As the Prime Minister said in the House, obviously these are global tariffs, not targeted at the UK.
“From the UK’s perspective we will look at all options and keep all options on the table. We are prioritising engagement with the United States to stand up for British industry and find a resolution.”
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When asked whether the economic deal planned between the US and UK would cover steel and aluminium, the spokesman said he was “not going to get ahead of those discussions”.
Around 5% of UK steel exports and 6% of aluminium exports by volume go to the US, although trade bodies for both industries claim that is an underestimate of the scale of shipments across the Atlantic.
The move is the latest blow to a steel industry, which has seen thousands of job losses in recent years because of issues including global competition, high energy costs and the shift to cleaner technologies.
The US is the British steel industry’s second largest export market behind the European Union.
Trade body UK Steel said that in 2024 the UK exported 180,000 tonnes of semi-finished and finished steel to the US, worth ￡370 million, some 7% of the UK’s total steel exports by volume and 9% by value.
Exports include specialised steel used by the US navy on its submarines, with the Government arguing that the tariffs will push up costs for American taxpayers, in an attempt to persuade Mr Trump to change course.
The aluminium industry said the US market accounts for 10% of exports – valued at ￡225 million.
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British manufacturers warned Mr Trump’s fresh trade tariffs on metals will create “severe problems” and are a “big concern”.
Liam Bates, president of long products at Sheffield steel maker Marcegaglia, said the tariffs are “very unhelpful”.
Between 15% and 20% of what Marcegaglia melts in Sheffield is sent to the US, across both semi-finished and finished steel products.
Mr Bates said: “We do have a large trade flow to the US market. I don’t think it’s quite existential, but it will cause us to review what was a strong growth strategy.”
He added: “There are certain product lines where it does create problems on an already burdened product.
“It is very unhelpful at a time where the whole industry is struggling, but when I look at certain parts of the business it will create severe problems.”
Trade unions in the steel industry warned jobs could be at risk as a result of the tariffs.
Community union assistant general secretary Alasdair McDiarmid called the US tariffs on UK steel exports “hugely damaging” and threaten jobs.
He said: “For the US it’s also self-defeating, as the UK is a leading supplier of specialist steel products required by their defence and aerospace sectors.”
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Unite general secretary Sharon Graham 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.”