Keir Starmer's charm offensive in Washington has failed to stop US President Donald Trump from slapping a 25 per cent tariffs on UK steel and aluminium imports.
It comes as Trump continues to escalate his global trade war with steep tariffs on Canada and the EU, both of which have responded with $20billion worth of tariffs of their own.
Business Secretary Jonathan Reynolds referred to Trump’s decision to hit British businesses with this extra tax as “disappointing”, while Prime Minister Starmer said 'all options are on the table' in terms of responding.
Reynolds said: “We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.
“Meanwhile, we remain resolute in our support for UK industry. This Government is working with affected companies today, and I back industry’s application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers.”
Despite the government's words of support, steel industry chiefs have raised serious concerns for their sector, particularly as the UK exports millions of dollars of steel to America each year.
Indeed, the US is the second biggest steel market after the EU for Britain, and it is a 'high value' market, meaning it imports premium steel products with high price tags for things like defence.
UK Steel Director General, Gareth Stace, said: “Today’s imposition of tariffs on UK steel from the US administration is hugely disappointing. 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.
"What’s more, the EU will also be taking trade restrictive action soon that will amplify the impact of US tariffs.
“It is essential that the UK Government not only continues efforts to negotiate exemptions with the US, but also takes decisive action to bolster our trade defences.
"We greatly appreciate all the efforts that have been made so far and will continue working closely with our Government to secure the best possible outcome.”
Are Trump's tariffs a big deal for the UK?
The UK exports around 200,000 tonnes of steel per year to the US, worth over £400m. This is well behind China (6 million tonnes), Brazil (4.1million tonnes) and Mexico (3.2 million tonnes), and it only makes up 0.1 per cent of the UK's economy.
However, 33,700 people are directly employed via steel in the UK with a further 42,000 in employed in supply chains. Tariffs would seriously jeopardise hundreds of these jobs, many of which are being done by people whose parents and grandparents have been doing and feel very passionately about.
There is also the argument the UK should be able to make its own steel for things like defence and vital infrastructure projects in an increasingly volatile geopolitical world.
The Royal Navy, for example, requires high quality steel for warships and questions have been raised whether handing over production of this to China is a good idea.
Steel hotspots that would be hit hardest by Trump’s tariffs include south Wales, notably steelworks outside of Cardiff and Port Talbot, and also Sheffield, Birmingham and Middlesbrough.
Take Wales for example. In Port Talbot, a proud ‘steel town’ on the south Wales coast, a huge 8,500 predominantly local people are employed by the steelworks.
In Cardiff, Celsa steel, who operate a steelworks on the outskirts of the city, employ 2,000 (including downstream fabrication facilities).
Not only is steel a big employer for these towns, but it also pays higher than the average wage in the area.
The median steel sector salary is £37,315, 26 per cent higher than the UK national median and 35 per cent higher than the regional median in Wales, Yorkshire, and Humberside, where its jobs are concentrated.
Any loss of jobs could therefore be argued as more impactful on the local community than if jobs were lost in more prosperous areas like London or the south east.
The party who reacted most angrily was perhaps the Liberal Democrats.
Deputy Leader Daisy Cooper said Britain is being “repeatedly kicked by the other side and doing nothing" and "that is not an effective negotiating position."
“The business secretary needs to toughen up. Enough is enough. We must act from a position of strength, standing up for British steel and the UK economy through retaliatory measures."
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It comes as Trump continues to escalate his global trade war with steep tariffs on Canada and the EU, both of which have responded with $20billion worth of tariffs of their own.
Business Secretary Jonathan Reynolds referred to Trump’s decision to hit British businesses with this extra tax as “disappointing”, while Prime Minister Starmer said 'all options are on the table' in terms of responding.
Reynolds said: “We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.
“Meanwhile, we remain resolute in our support for UK industry. This Government is working with affected companies today, and I back industry’s application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers.”
Despite the government's words of support, steel industry chiefs have raised serious concerns for their sector, particularly as the UK exports millions of dollars of steel to America each year.
Indeed, the US is the second biggest steel market after the EU for Britain, and it is a 'high value' market, meaning it imports premium steel products with high price tags for things like defence.
UK Steel Director General, Gareth Stace, said: “Today’s imposition of tariffs on UK steel from the US administration is hugely disappointing. 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.
"What’s more, the EU will also be taking trade restrictive action soon that will amplify the impact of US tariffs.
“It is essential that the UK Government not only continues efforts to negotiate exemptions with the US, but also takes decisive action to bolster our trade defences.
"We greatly appreciate all the efforts that have been made so far and will continue working closely with our Government to secure the best possible outcome.”
Are Trump's tariffs a big deal for the UK?
The UK exports around 200,000 tonnes of steel per year to the US, worth over £400m. This is well behind China (6 million tonnes), Brazil (4.1million tonnes) and Mexico (3.2 million tonnes), and it only makes up 0.1 per cent of the UK's economy.
However, 33,700 people are directly employed via steel in the UK with a further 42,000 in employed in supply chains. Tariffs would seriously jeopardise hundreds of these jobs, many of which are being done by people whose parents and grandparents have been doing and feel very passionately about.
There is also the argument the UK should be able to make its own steel for things like defence and vital infrastructure projects in an increasingly volatile geopolitical world.
The Royal Navy, for example, requires high quality steel for warships and questions have been raised whether handing over production of this to China is a good idea.
Steel hotspots that would be hit hardest by Trump’s tariffs include south Wales, notably steelworks outside of Cardiff and Port Talbot, and also Sheffield, Birmingham and Middlesbrough.
Take Wales for example. In Port Talbot, a proud ‘steel town’ on the south Wales coast, a huge 8,500 predominantly local people are employed by the steelworks.
In Cardiff, Celsa steel, who operate a steelworks on the outskirts of the city, employ 2,000 (including downstream fabrication facilities).
Not only is steel a big employer for these towns, but it also pays higher than the average wage in the area.
The median steel sector salary is £37,315, 26 per cent higher than the UK national median and 35 per cent higher than the regional median in Wales, Yorkshire, and Humberside, where its jobs are concentrated.
Any loss of jobs could therefore be argued as more impactful on the local community than if jobs were lost in more prosperous areas like London or the south east.
The party who reacted most angrily was perhaps the Liberal Democrats.
Deputy Leader Daisy Cooper said Britain is being “repeatedly kicked by the other side and doing nothing" and "that is not an effective negotiating position."
“The business secretary needs to toughen up. Enough is enough. We must act from a position of strength, standing up for British steel and the UK economy through retaliatory measures."
Find Out More...