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Donald Trump. Picture: REUTERS/CARLOS BARRIA
Donald Trump. Picture: REUTERS/CARLOS BARRIA

London/Bengaluru — The UK said on Wednesday it was disappointed with US President Donald Trump’s imposition of tariffs on steel and aluminium imports, but did not follow the EU in retaliating.

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.

The British government had also said its provision of key goods for the US defence, oil and gas and construction sectors meant it should be given a carve-out.

Trump imposed global tariffs of 25% on all imports of the steel and aluminium on Wednesday, which he said would reorder global trade in favour of the US.

The EU responded by saying it would impose counter-tariffs on €26bn worth of US goods from next month.

“It’s disappointing the US has today imposed global tariffs on steel and aluminium,” Britain’s business minister, Jonathan Reynolds, said.

“We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.”

A British official said on Tuesday the government would not impose retaliatory trade tariffs on the US 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 US, 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 US 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.

Reynolds said the government was working with companies affected by the measures and would investigate what further steps might be needed to protect UK producers.

Trump’s increased tariffs on steel and aluminium imports took effect on Wednesday as prior exemptions, duty-free quotas and product exclusions expired. 

Reuters

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