Starmer says all options on table to respond to Trumps tariffs

Sir Keir Starmer has said the UK would keep open the option of retaliatory measures after Donald Trump hit steel and aluminium imports with 25% tariffs.

Jobs could be at risk in the beleaguered British steel industry after the UK failed to secure an exemption to the US president’s global tariffs on the metal imports.

The European Union responded by announcing trade counter-measures, hitting American goods with retaliatory tariffs, but the Prime Minister resisted calls for the UK to immediately hit back.

At Prime Minister’s Questions, Sir Keir said: “I’m disappointed to see global tariffs in relation to steel and aluminium.

“We will take a pragmatic approach.”

The UK is “negotiating an economic deal which covers and will include tariffs if we succeed,” he told MPs.

“But we will keep all options on the table.”

Sir Keir’s comments came in response to Liberal Democrat leader Sir Ed Davey, who called for the UK to be “more robust” with the US president “like the Europeans and like the Canadians”.

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 of the scale of shipments across the Atlantic.

The move is the latest blow to a steel industry, which has seen thousands of job losses in recent years due to issues including global competition, high energy costs and the shift to cleaner technologies.

The tariffs came into effect at 4am GMT, and raise a flat duty on steel and aluminium entering America to 25%.

The European Commission said countermeasures to the tariffs, which would affect around 26 billion euros (around £22 billion) of EU exports, will be introduced in April.

The targeted measures include not only steel and aluminium but motorcycles, bourbon, peanut butter and jeans – with tariffs also hitting products which are important in key Republican-leaning states.

The US is the British steel industry’s second largest export market behind the European Union.

Trade body UK Steel said that in 2024 the UK exported 180,000 tonnes of semi-finished and finished steel to the US, worth £370 million, some 7% of the UK’s total steel exports by volume and 9% by value.

Exports include specialised steel used by the US navy on its submarines, with the Government arguing that the tariffs will push up costs for American taxpayers, in an attempt to persuade Mr Trump to change course.

The aluminium industry said the US market accounts for 10% of exports – valued at £225 million.

Gareth Stace, director-general of UK Steel, branded the Trump administration’s move “hugely disappointing”.

He added: “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 is also pushing ahead with trade restrictive action that will amplify the impact of US tariffs.”

Nadine Bloxsome, chief executive of trade body the Aluminium Federation, said: “The enforcement of US tariffs today is a critical moment for the UK aluminium industry.

“While the direct impacts are already being felt through reduced US orders and scrap export pressures, the additional risk of trade diversion due to EU countermeasures creates an even more serious challenge.

“We are concerned that without proactive safeguarding, the UK could face an influx of low-cost imports, threatening the competitiveness and stability of our domestic market.”

Trade unions in the steel industry warned jobs could be at risk as a result of the tariffs.

Community union assistant general secretary Alasdair McDiarmid said: “These US tariffs on UK steel exports are hugely damaging and they threaten jobs.

“For the US it’s also self-defeating, as the UK is a leading supplier of specialist steel products required by their defence and aerospace sectors.”

Unite general secretary Sharon Graham said: “Our Government must act decisively to protect the steel industry and its workers following the announcement of US tariffs.

“This is a matter of national security. Steel should be immediately designated as critical national infrastructure to properly protect it.”

Published: 12/03/2025 by Radio NewsHub