Prime Minister Keir Starmer is treading softly with his response to President Donald Trump’s increased tariffs on steel and aluminum in the hopes that he can negotiate a wider trade deal with the U.S.
Starmer said that he was “disappointed” to see global tariffs on steel and aluminum imports to the U.S. take effect on Wednesday, but the U.K. will take a “pragmatic approach” as it seeks to negotiate an economic deal with the Trump administration. He wants to keep “all options on the table.”
Starmer was responding to a question in the House of Commons from Ed Davey, leader of the Liberal Democrats, who urged the U.K. to take a similar approach to the Europeans and the Canadians in being “more robust with President Trump.” Davey suggested that Starmer fly to Canada as soon as possible to show that “Britain stands with its Commonwealth allies against Trump’s threats and against Trump’s tariffs.”
The tariffs introduced by the Trump administration raise a flat duty on steel and aluminum entering the U.S. to 25%. They were designed to protect America’s steel and aluminum industries because Trump says the U.S. market has been flooded with cheap steel and aluminum, which is often subsidized by foreign governments.
But the tariffs are rattling the markets and ramping up the risk of a global trade war. The European Union hit back on Wednesday, announcing that it would impose trade countermeasures on up to $28 billion worth of U.S. goods in retaliation to the tariffs.
Ursula von der Leyen, president of the European Commission, the EU’s executive body, called the U.S. levies “unjustified” and “disruptive to transatlantic trade.”
“The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate,” von der Leyen said.
The European measures, which are intended to match the scope of the U.S. tariffs on European exports, are scheduled to take effect in April, giving officials more time to negotiate an agreement beforehand. The EC said it was ready to resume talks with the U.S. on the matter.
Canada also responded swiftly to the duties by stating that it would impose a 25% reciprocal tariff on an additional C$29.8 billion ($21 billion) worth of goods imported from the U.S.
“Our sole focus is to stand up for Canada interests, Canadian jobs and Canadian workers,” Dominic LeBlanc, Canada’s finance minister, told reporters in Ottawa.
Trump had threatened at one point to double the tariffs on Canadian steel and aluminum, but he backed down after Ontario Premier Doug Ford suspended a plan to impose a 25% surcharge on electricity exports to U.S. customers.
Trade body UK Steel said the tariffs on metals would have “hugely damaging consequences” for British suppliers and their customers in the U.S. The group pointed out that exports to the U.S. account for 9% of the U.K.’s total steel exports by value.
“These tariffs couldn’t come at a worse time for the U.K. steel industry,” said Gareth Stace, director general of trade body UK Steel. “As we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape.”
The U.K.’s decision to refrain from introducing retaliatory tariffs was welcomed by BritishAmerican Business, a transatlantic trade and business group. Its Chief Executive Duncan Edwards said his organization supports further discussions between the U.S. and the U.K. to reduce trade barriers, strengthen economic ties, and ensure businesses on both sides of the Atlantic can thrive.
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