Headlines
UK favours pragmatism over tit-for-tat tariffs, but all options open
Published by Global Banking & Finance Review®
Posted on March 12, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 12, 2025
2 min readLast updated: January 24, 2026
The UK opts for a pragmatic approach to US steel tariffs, seeking exemptions through negotiations while keeping all options open.
By Kate Holton
LONDON (Reuters) -Britain did not immediately retaliate to U.S. President Donald Trump's tariffs on steel and aluminium imports on Wednesday, though Prime Minister Keir Starmer said he was disappointed by the move and that all options remained on the table.
Trump imposed global tariffs of 25% on all imports of steel and aluminium which he said would reorder global trade in favour of the United States.
Britain had hoped to avoid tariffs on its steel sector, which is small but produces specialist products for defence and other industries. Trump said last month the two countries might reach a bilateral trade deal that would avert duties.
"Like everybody else, I'm disappointed to see global tariffs in relation to steel and aluminium, but we will take a pragmatic approach," Starmer told parliament.
"We are ... negotiating an economic deal which covers and will include tariffs if we succeed, but we will keep all options on the table."
The British government had argued its provision of key goods for the U.S. defence, oil and gas and construction sectors meant it should be given a carve-out.
The EU responded to the U.S. tariffs by saying it would impose counter-tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month.
A British official said on Tuesday the government would not impose retaliatory trade tariffs on the United States and focus instead on trying to secure an exemption.
The head of the British steel trade body, UK Steel, questioned whether Trump realised Britain was an "ally, not a foe".
"Our steel sector is not a threat to the U.S., but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade," Director General Gareth Stace said.
Steel UK said the U.S. was Britain's second most important export market for steel after the EU, accounting for 9% of UK steel exports by value and 7% by volume.
Business minister Jonathan Reynolds said the government was working with companies impacted by the measures and would investigate what further steps might be needed to protect UK producers.
(Reporting by Kate Holton and William James in London and Gnaneshwar Rajan in Bengaluru; Editing by Jacqueline Wong, Lincoln Feast and Christina Fincher)
The UK did not immediately retaliate to U.S. tariffs on steel and aluminium imports, with Prime Minister Keir Starmer expressing disappointment but advocating for a pragmatic approach.
The U.S. is the second most important export market for UK steel, accounting for 9% of UK steel exports by value and 7% by volume.
The British government is focusing on negotiating an economic deal that includes tariffs and is trying to secure an exemption from the U.S. tariffs.
The EU announced it would impose counter-tariffs on 26 billion euros worth of U.S. goods starting next month.
UK Steel questioned whether President Trump understood that Britain is an ally, not a foe, emphasizing that the UK steel sector is a partner to key customers in addressing global trade issues.
Explore more articles in the Headlines category
