UK industry braced as Trump says ‘no exemptions’ on tariffs for steel and aluminium

UK industry braced as Trump says ‘no exemptions’ on tariffs for steel and aluminium

 US president declares ‘25% without exceptions or exemptions’ for both metals on ‘all countries’, with measures due to come in by 4 March

Donald Trump raised tariffs on steel and aluminium imports to a flat 25% rate “without exceptions or exemptions” as he vowed to “make America rich again”.

Britain’s industry body UK Steel has already warned such tariffs would be a “devastating blow” to an already crippled sector fearful of more job cuts.

Under Joe Biden’s administration, duty-free quota arrangements were negotiation with Britain, the European Union and Japan after Trump, in his first term, imposed tariffs of 25 per cent on steel and 10 per cent on aluminum.

The new rule would close loopholes and eliminate exemptions, a White House official said.

The measures will take effect on 4 March.

Trump said he applied the 25% rate to both metals “so that everyone can understand exactly what it means.”

“It’s 25% without exceptions or exemptions. That’s all countries, no matter where it comes from, all countries,” he said.

The European Commission said it saw no justification for the tariffs and said President Ursula von der Leyen would meet US Vice President JD Vance in Paris on Tuesday during an AI summit.

The EU has threatened to retaliate immediately to new tariffs, but it is not clear whether the UK would join in.

Foreign Secretary David Lammy has previously suggested Britain would not impose retaliatory tariffs.

Peter Mandelson, Britain’s newly appointed ambassador to the US, has said the UK must respect Donald Trump’s “strong and clear mandate for change”.

The Times also cited senior government sources as saying there were concerns retaliatory tariffs would have little impact and ultimately serve to provoke Trump further.

Trump later on Monday said he would give “great consideration” to Australia’s request for an exemption to the steel tariffs due to its trade surplus with the US.

Asked about threats of retaliation by other countries against his new tariffs, Trump said: “I don’t mind.”

Lord Mandelson, in an interview with the BBC, said Keir Starmer’s government can “always make our views known privately and directly” but that it must “understand what drives him”.

Lord Mandelson acknowledged he was “concerned” about the looming prospect of tariffs and said Britain would “not necessarily agree” with every detail of the new US President’s agenda.

But he added he did not believe Trump’s tariffs “are actually directly targeted at us.”

“And I believe that, given the relationship that we have, we can always make our views known – best, by the way, directly and privately,” he said.

“We have a strong relationship that enables us to influence the president and his policies where necessary, and it certainly should not affect our ability to work well together, and that’s what I intend remains the case.”

UK’s steel industry body has called for decisive action from ministers while unions warned further jobs could be put at risk.

Britain exported 166,433 tonnes of steel to the US in 2023, the last full year for which figures are available.

Figures 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% of UK steel exports in 2023.

Reports suggest the Prime Minister is hoping to visit Washington in the coming weeks, though Downing Street has not confirmed any upcoming travel.

With agencies

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