The UK authorities stated President Donald Trump’s actions have been disappointing however didn’t retaliate, whereas Brussels threatened a commerce struggle with Washington.
Jobs may very well be in danger within the beleaguered British metal trade after President Donald Trump imposed a 25 % tax on U.S. imports.
Enterprise Secretary Jonathan Reynolds stated the worldwide tariffs on metal and aluminium imports have been “disappointing” however the UK was not retaliating, not like the European Union which instantly responded with countermeasures on U.S. items.
Ministers insisted they have been taking a realistic method and avoiding knee-jerk reactions after last-ditch efforts to influence the U.S. president to grant an exemption for the UK failed.
The federal government stated round 5 % of UK metal exports and 6 % of aluminium exports by quantity go to the US, though commerce our bodies for each industries declare that’s an underestimate of the size of shipments throughout the Atlantic.
The transfer is the newest blow to a metal trade which has seen 1000’s of job losses lately owing to points together with world competitors, excessive power prices, and the shift to cleaner applied sciences.
The tariffs got here into impact at 4 a.m. GMT, and lift a flat obligation on metal and aluminium coming into America to 25 %.
Reynolds stated: “It’s disappointing the U.S. has right this moment imposed world tariffs on metal and aluminium.
“We’re targeted on a realistic method and are quickly negotiating a wider financial settlement with the U.S. to get rid of further tariffs and to learn UK companies and our financial system.”
Brussels stated countermeasures to the tariffs, which might have an effect on round 26 billion euros (round £22 billion) of EU exports, might be launched in April “to defend European pursuits.”
The focused measures embrace not solely metal and aluminium however bikes, bourbon, peanut butter, and denims, with tariffs additionally hitting merchandise that are essential in key Republican-leaning states.
America is the metal trade’s second largest export market behind the European Union.
Commerce physique UK Metal stated that in 2024 the UK exported 180,000 tonnes of semi-finished and completed metal to the US, price £370 million, some 7 % of the UK’s complete metal exports by quantity and 9 % by worth.
Exports embrace specialised metal utilized by the U.S. navy on its submarines, with the federal government arguing that the tariffs will push up prices for American taxpayers, in an try to influence Trump to alter course.
The aluminium trade stated the U.S. market accounts for 10 % of exports, valued at £225 million.
Secretary of State for Enterprise and Commerce Jonathan Reynolds walks outdoors Quantity 10 Downing Road in London on July 9, 2024. Chris J. Ratcliffe/Reuters
Gareth Stace, director-general of UK Metal, branded the Trump administration’s transfer “massively disappointing.”
He added: “President Trump should certainly recognise that the UK is an ally, not a foe. Our metal sector just isn’t a menace to the U.S. however a associate to key prospects, sharing the identical values and goals in addressing world overcapacity and tackling unfair commerce.
“These tariffs couldn’t come at a worse time for the UK metal trade, as we battle with excessive power prices and subdued demand at house, in opposition to an oversupplied and more and more protectionist world panorama.
“What’s extra, the EU can be pushing forward with commerce restrictive motion that may amplify the affect of U.S. tariffs.”
Nadine Bloxsome, chief government of commerce physique the Aluminium Federation, stated: “The enforcement of U.S. tariffs right this moment is a important second for the UK aluminium trade.
“Whereas the direct impacts are already being felt by means of lowered U.S. orders and scrap export pressures, the extra danger of commerce diversion as a consequence of EU countermeasures creates an much more severe problem.
“We’re involved that with out proactive safeguarding, the UK might face an inflow of low-cost imports, threatening the competitiveness and stability of our home market.”
Commerce unions within the metal trade warned jobs may very well be in danger because of the tariffs.
Group union Assistant Common Secretary Alasdair McDiarmid stated: “These U.S. tariffs on UK metal exports are massively damaging and so they threaten jobs.
“For the U.S. it’s additionally self-defeating, because the UK is a number one provider of specialist metal merchandise required by their defence and aerospace sectors.”
Unite Common Secretary Sharon Graham stated: “Our authorities should act decisively to guard the metal trade and its employees following the announcement of U.S. tariffs.
“It is a matter of nationwide safety. Metal must be instantly designated as important nationwide infrastructure to correctly defend it.”