The British government has refused to criticize Donald Trump’s decision to impose 25 percent rates on the export of British steel, despite the rising concern of industrial leaders that the move will seriously damage the sector.
The executive Order of Trump, which removes exemptions for the UK and all other countries, will see all steel and aluminum imports in the US of 12 March, subject to rates. Trump defended the policy and explained from the Oval Office: “This is a big problem, the beginning of making America again. Our nation requires that steel and aluminum are made in America, not in foreign countries. “
Trade consultant Peter Navarro insisted that the measures were essential to “secure our steel and aluminum industry such as the backbone and pillar industry of the economic and national security of America”.
UK Steel Director General Gareth Stace condemned the decision and warned that Trump “had taken a leader to free trade” with potentially devastating consequences for the British steel industry.
“This will not only hinder British exports to the US, but it will also have enormous urgent effects on international trade flows, which adds further import pressure to our own market,” Stace said. He argued that British steel was ‘no threat’ for American national security, and added that many American industries depend on high -quality British steel that is not available in their own country.
Stace urged the British government to act decisively and called for “stronger action” and immediate negotiations to prevent further economic damage. “This is clearly a new era for global trade. We are convinced that the British government recognizes the impact on our industry and will explore all available options, “he said.
Despite the concern of the industry, No. 10 refused to challenge the decision of the White House immediately. When asked if Trump was wrong to impose the rates, the official spokesperson for the Prime Minister stated: “We will follow an considered approach of this. We will come into contact with the US, but the government is clear that we will work in our national interest. “
The British government also refused to confirm whether it asked the US to exclude Great Britain from the rates or whether financial support would be introduced for the domestic steel sector. Instead, officials pointed to existing measures, with a attention for £ 2.5 billion in investments and plans to lower the electricity costs for steel companies through the British industry Supercharger Initiative.
Lord Peter Mandelson, the newly appointed ambassador of the UK in Washington, seemed to follow a diplomatic approach, which states that Trump’s mandate must be “respected”.
The rates have also caused a broader trade conflict, in which chairman of the European Commission Ursula von der Leyen warns that “solid and proportional countermeasures” will be taken in response. “The EU will act to protect its economic interests … Rates are taxes – bad for business, worse for consumers,” she said.
Chris Southworth, secretary -general of the International Chamber of Commerce UK, warned that the impact of the rates would extend far beyond the steel industry, which would influence the most important sectors such as space travel, automotive production and construction.
“The UK plays an incredibly important role in the worldwide reaction,” said Southworth, in which he encouraged world leaders to “contract and respond collectively”.
The US is the second largest export market of the British steel industry after the EU, accounting for five percent of exports in 2023. UK Steel data show that 166,433 tons were exported to the US in 2023, with 162,716 tons sent in 2024 to the present Until now, so far, so far, in 2024, so far, so far, in 2024, so far, so far, in 2024, so far, so far, in 2024, Until now, so far, in 2024, so far, so far, in 2024, excluding the December figures.
While the British government carefully enters in its response, market leaders fear that without decisive action, British steel makers could suffer damage in the long term due to the latest escalation in global trade stresses.