Treasury minister James Murray (Image: SKY NEWS)
Britain is going to "reserve our right to retaliate" to global tariffs imposed by the US, a Labour minister said. But Treasury minister James Murray added that the UK would not act immediately and would seek a "pragmatic" approach. US President Donald Trump slapped a 25% tax on steel and aluminium entering America. Mr 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." Asked whether the imposition of retaliatory tariffs would remain on the table, Mr Murray told Times Radio: "We reserve our right to retaliate, but we're very clear that we want a pragmatic approach, working closely and productively with the US."
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UK industries are braced for the impact of the tariffs, which came into effect at midnight in the US, around 4am GMT.
The EU has already announced it will introduce counter-measures on American goods.
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The issue was discussed in a call between Sir Keir Starmer and Mr Trump on Monday, and ministers and officials have been in frequent talks with their US counterparts since the measures were first proposed in February.
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The Government estimates around 5% of UK steel exports and 6% of aluminium exports by volume go to the US, although the aluminium industry body said the US market accounted for 10% of exports - valued at ￡225 million.
Mr Trump has previously threatened to impose tariffs on other countries and then relented, but he remains wedded to the overall idea of making the US richer through taxing imports.