Now Trump targets Britain and EU with tariffs in transatlantic commerce conflict: Starmer’s pleas to spare UK fail as Europe hits again – amid fears of a repeat of Donald’s spat with Canada

Keir Starmer is resisting strain to retaliate at this time after failing in his bid to influence Donald Trump to spare Britain from brutal tariffs on metal.

The US president has pushed forward with the 25 per cent levy on metal and aluminium imports regardless of determined pleas for an exemption.

However the PM has stopped wanting tit-for-tat tariffs – which have been instantly imposed by the EU – with allies saying he’ll maintain a ‘cool head’. Canada‘s reprisals over tariffs sparked a unprecedented spat final evening the place Mr Trump briefly doubled the costs to 50 per cent – earlier than each side backed off.

Ministers this morning denied that the UK response was ‘weak’, because the business warned of an enormous hit coming on the ‘worst doable time’. 

Enterprise Secretary Jonathan Reynolds pressured he’s making an attempt to strike a wider commerce cope with the US – one thing Mr Trump hinted at throughout Sir Keir’s White Home love-in final month.

Sir Keir made a remaining try to move off the measures in a cellphone name with Mr Trump on Monday evening. Nonetheless, UK industries had been then informed to brace themselves for the impression of the tariffs, which got here into impact at 4am.

Commerce affiliation UK Metal branded the US transfer ‘massively disappointing’.

Donald Trump has pushed forward with the 25 per cent levy on metal and aluminium imports regardless of determined pleas for an exemption

Keir Starmer is resisting strain to retaliate after failing in his bid to influence Mr Trump to spare Britain (pictured collectively on the White Home final month) 

The PM has stopped wanting tit-for-tat tariffs – which have been instantly imposed by the EU (pictured, fee president Ursula von der Leyen) – with allies saying he’ll maintain a ‘cool head’

Director Common Gareth Stace stated: ‘President Trump should absolutely recognise that the UK is an ally, not a foe. Our metal sector will not be a menace to the US however a accomplice to key prospects, sharing the identical values and aims in addressing international overcapacity and tackling unfair commerce.

‘These tariffs could not come at a worse time for the UK metal business, as we battle with excessive vitality prices and subdued demand at dwelling, towards an oversupplied and more and more protectionist international panorama. What’s extra, the EU can also be pushing forward with commerce restrictive motion that can amplify the impression of US tariffs.’

Mr Stace added: ‘It’s important that the UK Authorities not solely continues efforts to barter exemptions with the US but in addition takes decisive motion to bolster our commerce defences.’ 

Britain exported 166,433 tonnes of metal to the US in 2023, the final full yr for which figures can be found.

Statistics from commerce physique UK Metal confirmed that in 2024 some 162,716 tonnes had been despatched to the US, however that doesn’t but embrace knowledge from December.

The US is the business’s second-largest export market after the EU, though the Authorities stated it solely accounted for five per cent of UK metal exports in 2023.

Touring broadcast studios this morning, Treasury minister James Murray was pressed on whether or not the UK was displaying weak point. 

He informed Sky Information: ‘Nicely, we’re in a really totally different place than the EU because of the Prime Minister’s journey to Washington final month.

‘The UK and the US have been negotiating quickly for an financial settlement, and so we’re able the place that negotiation is ongoing and these international tariffs, when you like, have landed in the course of that work. So we do not wish to be pushed off track by this.

‘We wish to keep it up with our speedy negotiation towards an financial settlement, as a result of we expect that is in the perfect curiosity of British companies and the British public.’

Mr Murray stated the UK ought to keep away from a ‘knee-jerk response’.

‘We predict the fitting response is to proceed pragmatically, cool-headedly, with out a knee-jerk response, however towards our financial settlement that we’re negotiating with the US to safe, as a result of that is in the perfect pursuits of the UK.’

In a press release in a single day, Mr Reynolds insisted ‘all choices’ had been on the desk to reply within the nationwide curiosity.

‘It is disappointing the US has at this time imposed international tariffs on metal and aluminium,’ he stated.

‘We’re centered on a practical method and are quickly negotiating a wider financial settlement with the US to remove extra tariffs and to profit UK companies and our economic system.

UK industries have warned over the impression of the tariffs, which got here into impact at 4am (file picture of the Tata plant in Port Talbot, which is being transformed to an eco furnace) 

‘In the meantime we stay resolute in our help for UK business. This Authorities is working with affected corporations at this time, and I again business’s software to the Commerce Cures Authority to research what additional steps is perhaps obligatory to guard UK producers.’

‘I’ll proceed to interact intently and productively with the US to press the case for UK enterprise pursuits. We’ll maintain all choices on the desk and will not hesitate to reply within the nationwide curiosity,’ he added.

Brussels stated counter-measures to the tariffs, which might have an effect on round 26 billion euros (round £22 billion) of EU exports, shall be launched in April ‘to defend European pursuits’. 

Throughout Sir Keir’s go to to the US, Mr Trump dropped hints the UK can be spared from the worst of his tariffs, saying the PM had been ‘working laborious’ to persuade him over lunch. 

The president additionally stated he hoped for a ‘superb’ Transatlantic commerce settlement to keep away from the necessity for levies. 

He set alarm bells ringing by insisting he thought of VAT as tax that was inflicting an imbalance in commerce, threatening ‘reciprocal’ tariffs to offset the cost. The truth is, VAT is a gross sales tax. 

 The Authorities estimates round 5% of UK metal exports and 6% of aluminium exports by quantity go to the US (pictured: Tata Metal plant in Port Talbot, South Wales) 

The aluminium business physique had earlier warned the looming import taxes had been already having an impact.

Nadine Bloxsome, chief govt of the Aluminium Federation, stated: ‘The UK aluminium sector is already seeing the primary impacts of those tariffs.

‘The sharp rise in US premiums has created new incentives for scrap exports, elevating the danger of serious home scrap leakage. This not solely weakens the UK’s recycling capability however dangers undermining our sustainability aims and round economic system targets.

‘Moreover, the uncertainty round potential commerce diversion is inserting appreciable strain on UK producers, particularly as semi-finished items might flood the UK market at decrease prices.’

William Bain, head of commerce coverage for the British Chambers of Commerce (BCC), stated the choice plunged each nations ‘into a brand new age of uncertainty’.

However he warned towards a sequence of ‘tit-for-tat’ tariffs that might ‘simply spiral into an all-out commerce conflict’.

‘We should maintain talks alive and retaliatory tariffs ought to solely be used as a way of final resort. If talks succeed, it could be a win-win, bringing welcome stability and pro-growth financial situations for each side.’