Donald Trump has slapped huge tariffs on steel (Image: Getty)
Donald Trump’s decision to slap tariffs on imports of steel from the UK has triggered “chaos” in Whitehall, it has been claimed. The Department of Trade and Industry has been sent into a "tailspin" after the US President ordered a 25% tax on steel coming into America.
Civil Servants are said to be “trying everything possible” to deal with the fallout. A Whitehall source said: “Trump really has sparked chaos and they are trying everything possible to figure a way to deal with it. It has sent things into a bit of tailspin but some preparations have been taking place for a while.”
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Keir Starmer (Image: Getty)
Trade minister Douglas Alexander said the Government would adopt a “cool and clearheaded” approach rather than rushing into retaliatory measures.
It comes as Sir Keir Starmer stoked fears of a UK-US trade war after Downing Street refused to rule out retaliatory tariffs against the new levies, which also include aluminium imports to the US.
The Prime Minister’s official spokesman said the Government’s support for the steel sector “is resolute” after the US president announced a 25% levy on the metal.
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No 10 insisted ministers would “take a considered approach” but would “work in our national interest”.
Asked whether Britain would announce retaliatory tariffs, the spokesman said: “Well, I’m not going to get ahead of those conversations with industry, and indeed that engagement with the United States, but we will always act in the national interest, and our support for the steel sector is resolute and you can see that from the actions we’ve previously taken to support industry.”
Mr Trump has triggered a frenzy of responses from world leaders after announcing his new metal tariffs, which he warned "may go higher".
European Commission president Ursula von der Leyen said the levies would "trigger firm and proportionate countermeasures" from the EU.
Canadian prime minister Justin Trudeau said the tariffs were "unacceptable" while South Korea’s acting president Choi Sang-mok said his government would seek talks with the US.
Lord Mandelson, Britain’s new ambassador in Washington, said people must respect Mr Trump’s “strong and clear mandate”.
Britain exported 166,433 tonnes of steel to the US in 2023, the last full year for which figures are available.
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Peter Mandelson is now UK ambassador to the US (Image: Getty)
Figures from trade body UK Steel showed that in 2024 some 162,716 tonnes were sent to the US, but that does not yet include data from December.
UK Steel warned the tariffs “would be a devastating blow to our industry”.
Mr Trump has argued that the measures are necessary to protect the US steel industry and national security.
UK Steel director-general Gareth Stace said: “President Trump has taken a sledgehammer to free trade, with huge ramifications for the steel sector in the UK and across the world.
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“This will not only hinder UK exports to the US, but it will also have hugely distortive effects on international trade flows, adding further import pressure to our own market.
“UK steel poses no threat to US national security. Our high-quality products serve key US industries, many of which cannot source these domestically.
“This is a moment where our countries should work together to tackle global steel overproduction, not to be at loggerheads.”