Donald Trump has increased tariffs on all steel and aluminium imports to 25% – sparking alarm about the devastation it will cause in the UK
Keir Starmer has refused to rule out striking back over Donald Trump’s damaging tariffs amid calls to be tougher with him.
The PM was urged to be more “robust” after the erratic US President slapped new tariffs on steel and aluminium. Mr Starmer said all options are “on the table” after the EU immediately responded by announcing tariffs on US goods.
The UK’s steel industry has warned the tariffs “couldn’t come at a worse time”. Mr Starmer’s PMQs remarks came after Lib Dem leader Sir Ed Davey told him: “We on these benches believe he (Mr Starmer) must be more robust with President Trump like the Europeans and like the Canadians.”
Sir Ed also called on him to fly to Canada to show his solidarity with the Commonwealth nation against Trump’s threats and tariffs.
Mr Starmer said he was “disappointed” over the US President’s decision to impose tariffs. He told the Commons: “Like everybody else I’m disappointed to see global tariffs… We’ll take a pragmatic approach and we’ll keep all options on the table.”
He said the UK is “negotiating an economic deal which covers and will include tariffs if we succeed.” The European Union responded by announcing trade counter-measures, hitting American goods with retaliatory tariffs. But the Government has so far resisted calls for the UK to immediately hit back.
The tariffs came into effect at 4am. This morning Business Secretary Jonathan Reynolds said: “It’s disappointing the US has today imposed global tariffs on steel and aluminium.
“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.”
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The Government said 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.
The US President, 78, says the taxes will help create factory jobs across the US but his seesawing tariff threats have jolted the stock market and raised fears of an economic slowdown. The trade wars have even caused the wealth of some of the richest people on the planet – including Elon Musk – to tumble.
And the UK steel industry says the world leader’s tariffs “couldn’t come at a worse time” as it is thought the UK government is unlikely to immediately retaliate to the huge import tax.
The President on Tuesday threatened to put tariffs of 50% on steel and aluminum from Canada, but he chose to stay with the 25% rate after the province of Ontario suspended plans to put a surcharge on electricity sold to Michigan, Minnesota and New York.