Donald Trump and Jonathan Reynolds (Image: PA/Getty)
The Government has been accused of leaving the UK’s steel industry “dangerously exposed” to Donald Trump's tariffs.
The US President’s planned tariffs on imports of UK steel will cause damage on both sides of the Atlantic, Business Secretary Jonathan Reynolds said.
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Sir Keir Starmer’s Government has promised a package of up to ￡2.5 billion to boost the UK steel industry and help secure its future.
A consultation was launched aimed at looking at long-term issues facing the sector such as high electricity costs, unfair trading practices, and scrap metal recycling.
But the risks facing the industry could also include the 25% tax on imports planned by Mr Trump to come into force in March.
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Liberal Democrat Deputy Leader and Treasury Spokeswoman Daisy Cooper MP said: “The government is leaving the UK steel industry dangerously exposed to Donald Trump and the devastating damage his tariffs could do.
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“It's time for ministers to prepare plans for retaliatory tariffs to show they're serious about standing up to Trump and protecting jobs in the steel industry.
“We can’t just let Trump and Musk bully us around. Plans for retaliatory tariffs should include Tesla tariffs to hit Trump's crony Elon Musk in the pocket.
“While the Conservatives and Reform cheer on Trump's damaging agenda, we must call out his bullying and stand up for the UK's interests.”
Mr Reynolds told the BBC’s Sunday With Laura Kuenssberg that specialised steel from the UK was used by the US Navy on its submarines and a 25% import tariff would push up the cost to US taxpayers.
“In relation to steel and aluminium, what we send to the US is very specialised, relatively niche products that the US needs,” he said.
He said: “Some of the things the US imports, it hasn’t got alternative suppliers for, the submarine casings that come from Sheffield, for instance, to the US Navy. I don’t want them paying more needlessly for that, so we can engage, and we’ve already been doing that.”
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Asked what the impact of the tariffs due to come into force in March would be, he said: “It would be negative for ourselves, it would be negative for the US as well.”
He said “there is the basis for constructive engagement” between the UK and US on tariffs, but “I’m not saying it’s easy”.
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“I appreciate they have a mandate for changing how they approach the issues of trade, but we have got a different argument, a different story to tell, to the EU or to China in relation to our trading relationships.”
The steel industry has faced a number of challenges in recent years, including a switch to a greener method of production at the huge plant in Port Talbot, South Wales, with the loss of jobs.