Keir Starmer promises to 'keep all options on the table' after UK hit by Trump tariffs
by StephenRigley · LBCBy StephenRigley
Sir Keir Starmer has said the UK would keep "all options on the table" after Donald Trump hit steel and aluminium imports with 25 per cent tariffs.
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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.
Read More: Trump’s fresh steel tariffs threaten UK growth hopes, warn business groups
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 five per cent of UK steel exports and six per cent 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 tariffs came into effect at 4am GMT, and raise a flat duty on steel and aluminium entering America to 25 per cent.
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.
Earlier Ministers denied that Ministers that the UK's response to the global trade crisis was "weak", as the industry warned of a huge hit coming at the "worst possible time".
Business Secretary Jonathan Reynolds stressed he is trying to strike a wider trade deal with the US - something Mr Trump hinted at during Sir Keir's White House trip last month.
Sir Keir made a final attempt to head off the measures in a phone call with Mr Trump on Monday night. However, UK industries were then told to brace themselves for the impact of the tariffs, which came into effect at 4am.
Trade association UK Steel branded the US move "hugely disappointing".
Director General Gareth Stace said: "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 (Alfed) 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.
"We welcome the fact that the Government has called on Alfed for support and information throughout this process.
"It is reassuring that any decisions will be made in full consultation with the industry. While the current non-retaliatory approach is understood, this is a fast-moving situation.
"Alfed will continue to provide real-time feedback and insights to ensure any future decisions are informed by accurate data and industry realities."
London's FTSE 100 Index steadied following sharp falls on Tuesday as global stock markets were sent reeling by US President Trump's moves to impose hefty tariffs on steel and aluminium.
The UK blue chip share index stood 17.6 points or 0.2 per cent higher at 8513.6 soon after opening on Wednesday.
It had fallen 1.2 per cent on Tuesday, hitting its lowest level since mid-January.
There were further hefty overnight falls on Wall Street where recession fears are mounting amid worries over a trade war, with the Dow Jones closing one per cent lower and the S&P 500 off 0.8 per cent.
Britain exported 166,433 tonnes of steel to the US in 2023, the last full year for which figures are available.
Statistics 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.
The US is the industry's second-largest export market after the EU, although the Government said it only accounted for 5 per cent of UK steel exports in 2023.