UK (Parliament Politics Magazine) – Keir Starmer faces growing pressure to secure a US trade deal after Donald Trump imposed a global 25% steel tariff, raising concerns over the UK’s steel industry.
After the newly elected American president announced that Australia might be exempted from heavy steel duties, the British PM is under pressure to negotiate a trade agreement with the US.
What did Donald Trump announce about steel tariffs?
The US president’s move to introduce a 25% global steel tariff earlier this week has sparked fears over Britain’s fragile steel industry.
He defended the major economic step, insisting it is “the beginning of making America rich again.”
As reported by The Independent, Mr Trump indicated on Tuesday that he would give “great consideration” to eliminating Australia from the steel tariffs because of its trade surplus.
In a setback for the UK’s trade expectations, Donald Trump stated,
“We have a huge deficit with the UK,”
though the imbalance is largely due to services rather than goods.
What did Rachel Reeves say about securing a US trade deal?
Chancellor Rachel Reeves pledged that she and Sir Keir Starmer would push for Britain’s exclusion from the newly imposed trade levies.
During a recording of the Political Party podcast, she remarked, “There is a deal to be done,” highlighting that “unlike many other countries around the world, we don’t run a trade surplus with the US.”
How did the UK steel chief respond to Donald Trump’s tariffs?
UK Steel’s chief criticized Mr Trump’s latest move to impose worldwide tariffs, calling it “a sledgehammer to free trade” amid ongoing trade tensions.
Gareth Stace, head of Britain’s steel trade organization, warned that Trump’s sweeping 25% steel tariffs would significantly impact both the UK’s steel sector and the wider global markets.
He added,
“It is deeply disappointing if President Trump sees the need to target UK steel, given our relatively small production volumes compared to major steel nations.”
Meanwhile, steel manufacturers have urged immediate intervention to soften the impact of the introduced levies, which they describe as a setback for the industry.
What did Lord Peter Mandelson say about Trump’s tariffs?
Britain’s newly appointed ambassador to Washington, Peter Mandelson, advised against an excessive response, stating,
“I don’t believe that his tariffs are actually directly targeted at us.”
Mr Mandelson stressed that the UK should respect Mr Trump’s “strong and clear mandate for change” while insisting that Keir Starmer’s administration could still communicate its concerns directly and privately to the American president.
When a question was asked about the UK’s strategy in dealing with Trump’s major policies while maintaining diplomatic ties, the newly appointed ambassador replied that Britain must handle each matter carefully and recognize the political shift in the US.
How much steel did the UK export to the US in 2023?
The official data reveal that the UK supplied 166,433 tonnes of steel to the United States in 2023.
Despite being the world’s second-largest export market after the EU, the US accounted for only 5% of the total Britain steel exports in 2023, according to government data.
How did the EU President respond to US tariffs?
Ursula von der Leyen condemned the US levies as “unjustified” and warned that the EU would respond accordingly, as Mr Trump hinted at expanding tariffs on aluminium imports.
EU Trade Commissioner Maroš Šefčovič revealed that the bloc is considering deepening trade relations with Gulf countries to navigate shifting global trade dynamics.
What has Donald Trump previously said about Keir Starmer?
Last month, after taking charge for the second time as U.S. president, Mr Trump praised the British prime minister for doing a “very good job thus far” and acknowledged his “very good relationship” with Keir Starmer.
During the U.S. presidential campaign, Keir Starmer held talks with Donald Trump at Trump Tower in New York.
What are tariffs?
Tariffs are taxes imposed on foreign products, requiring businesses to pay to their home country’s government. The most common type of tariff, widely used, is ad valorem, which is calculated based on a percentage of the value of imported goods.