UK Seeks Progress on Tariff Exemption at Upcoming US Talks
The United Kingdom is eager to see advancements regarding a potential exemption from Donald Trump’s tariffs during an important meeting next week between Sir Keir Starmer’s trade representative and his American counterpart. Business Secretary Jonathan Reynolds is scheduled to travel to Washington, DC, for discussions aimed at fostering a UK-US economic agreement. The Prime Minister is optimistic that these talks will lead to the removal of the hefty 25 percent tariffs imposed on steel and aluminum imports from Britain.
Despite the looming threat of these tariffs jeopardizing jobs in the UK and concerns about a potential influx of low-cost imports, Starmer has refrained from endorsing retaliatory measures. This contrasts with the Conservative government’s actions during Trump’s first term, which included imposing tariffs on iconic American products such as Harley-Davidson motorcycles, Levi’s jeans, and other goods.
Downing Street has emphasized the need for “progress” in negotiations concerning a broader economic deal between Reynolds and US Commerce Secretary Howard Lutnick. Starmer has made it clear that all options remain on the table, including the possibility of retaliation.
The i Paper has learned that Britain’s ambassador to the US, Lord Mandelson, is actively preparing for the discussions. He is advocating for a tariff exemption for the UK to the Trump administration and has been referring to the envisioned UK-US economic deal as MEGA—standing for “Make our Economies Great Again”—in a bid to echo Trump’s own campaign slogan, “Make America Great Again.”
The European Union has responded to the tariffs by announcing its own trade counter-measures, imposing retaliatory tariffs on American goods. This development has prompted Liberal Democrat leader Sir Ed Davey to advocate for a more assertive stance from the UK government towards President Trump, similar to the approach adopted by European and Canadian leaders.
However, it is understood that the UK government believes a more measured approach could yield better results in securing tariff exemptions. At Prime Minister’s Questions, Starmer expressed his disappointment regarding the global tariffs on steel and aluminum, stating, “We will take a pragmatic approach.” He added, “The UK is negotiating an economic deal that will encompass tariffs if we succeed, but we will keep all options on the table.”
Approximately 5 percent of the UK’s steel exports and 6 percent of aluminum exports by volume are directed towards the US, although both industries argue that this figure is likely an underestimate. The tariffs pose yet another challenge for the steel sector, which has already suffered thousands of job losses in recent years due to a combination of global competition, high energy expenses, and the transition to cleaner technologies.
The European Commission has announced that counter-measures against the tariffs are set to be implemented in April, potentially impacting around €26 billion (approximately £22 billion) worth of EU exports. These measures will target a range of products, including steel and aluminum, as well as motorcycles, bourbon, peanut butter, and jeans—many of which are significant imports for key Republican-leaning states.
The US stands as the second largest export market for the British steel industry, following the European Union, with a trade value of around £370 million. Exports include specialized steel utilized by the US Navy for its submarines, with the UK government contending that these tariffs will ultimately increase costs for American taxpayers, an argument aimed at persuading Trump to reconsider his stance.
- The aluminum sector notes that the US market constitutes about 10 percent of its exports, valued at £225 million.
- Gareth Stace, Director-General of UK Steel, described the tariffs as “hugely disappointing,” emphasizing that they arrive at a particularly challenging time for the UK steel industry.
- He remarked, “These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, amidst an oversupplied and increasingly protectionist global landscape.”
- Nadine Bloxsome, Chief Executive of the Aluminium Federation, expressed concerns about the immediate effects of reduced US orders and export pressures, warning that the risk of trade diversion due to EU counter-measures could pose even greater challenges.
- Sharon Graham, General Secretary of Unite, called on the government to take decisive action to protect the steel industry and its workers following the announcement of the US tariffs.
