Imposing US tariffs on UK steel would negatively impact both countries, according to Business Secretary Jonathan Reynolds. He emphasized the mutual interest between the UK and the US in negotiating an exemption from President Donald Trump‘s planned 25% import tax on steel, set to take effect in March.
Reynolds highlighted the UK’s unique trading relationship with the US, mentioning the country’s specialized steel exports, such as Navy submarine casings produced in Sheffield, that the US requires. He also noted that these tariffs would increase costs for US taxpayers.
Speaking on the “Sunday with Laura Kuenssberg” program, Reynolds stated that the tariffs would hurt the US as well as the UK. He had constructive talks with US officials, including the special envoy to the UK, acknowledging that while the US is changing its trade approach, the UK has a different argument to present compared to other countries like the EU or China.
The UK government has promised up to £2.5bn to support the domestic steel industry but has not yet retaliated to Trump‘s tariff announcement. UK Steel, representing the industry, called the tariffs a “devastating blow,” citing concerns not only about reduced exports to the US but also the risk of steel dumping in the UK by other nations who could no longer export to the US.
Shadow Business Secretary Andrew Griffith criticized the government for its lack of engagement with the US on this issue, calling for clearer communication with one of the UK’s closest trading partners.
The government also launched a consultation on its “Plan for Steel” to address long-term challenges facing the industry, including cheaper imports. Proposed measures include expanding steel production, encouraging the use of UK-made steel in public projects, and investing in environmentally friendly technologies like electric arc furnaces.
Reynolds acknowledged that new technologies would lead to job cuts, especially in places like Scunthorpe, but he expressed optimism that increased demand for UK steel could create new employment opportunities.
The Liberal Democrats, however, urged the government to prepare for potential retaliatory tariffs, warning that the UK steel industry is dangerously exposed to the impact of Trump’s policies.
