BRITAIN will keep “all options on the table” in response to Donald Trump imposing tariffs on steel and aluminium, Sir Keir Starmer vowed today.
The PM revealed he was “disappointed” our close ally had imposed the 25 per cent levy on the goods.
AlamySir Keir Starmer says “all options” are on the table concerning retaliatory tariffs[/caption]
Jonathan Reynolds says all options are on the table – but is resisting retaliatory tariffs for nowAlamy
But so far the UK has refused to hit back with ministers saying a trade agreement between the two countries is under discussion.
The PM said: “On the question of tariffs, like everybody else I’m disappointed to see global tariffs in relation to steel and aluminium. But we will take a pragmatic approach.
“We are…negotiating an economic deal which covers and will include tariffs if we succeed but we will keep all options on the table.”
Sir Keir also revealed that he had been in close contact with Canada over their tariff treatment by America – with Donald Trump wanting them to become the “51st state”.
READ MORE POLITICS
Business Secretary Jonathan Reynolds also said the UK is currently resisting move after Donald Trump slaps 25 per cent levy on steel as global trade war steps up a gear.
Speaking after the US announced the levies he said that “all options are on the table” and the Cabinet Minister won’t hesitate to act in the national interest.
Mr Reynolds said that he would be talking to the companies affected and will be working “closely and productively” with the US.
Around 5% of UK steel exports and 6% of aluminium exports by volume go to the US.
Treasury Minister James Murray said the UK must remain “cool-headed” and refused to follow the EU in imposing counter-tariffs worth some £22 billion.
He said: “We reserve our right to retaliate, but we want a pragmatic approach, working closely and productively with the US.
“We’re already negotiating rapidly toward an economic agreement. We want to continue with that really important work which came out of the prime minister’s successful visit to Washington last month.
“And we think that’s in the best interest of British businesses and the British public.”
Ursula von der Leyen, President of the European Commission, said: “The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate.”
President Trump initially only targeted Mexico, Canada and China with his trade war before opening them up to the world.
Why has Trump hit China, Canada, and Mexico with tariffs?
DONALD Trump has imposed a 25 per cent tariff on Chinese imports to the US and has threatened even bigger tariffs on Canadian steel and aluminium. But, why did he propose the levies?
China:
Trump believes China has not done enough to stop the production of chemicals used to make the drug fentanyl.
China serves as a major supplier of auto parts to the US.
Phones and computers along with other key electronic devices were also in the top imports from China last year, according to Commerce Department Data.
In 2023, the US imported around $427 billion worth of products from China in total, according to the US Census Bureau.
Data reveals that 78 per cent of all smartphones imported from the US came from China.
Trump’s tariff threat has sparked fears of price rises for fashion items and toys.
Beijing has responded by outlining its own tariffs on American goods, sparking fears of an all-out trade war between the two powerhouses.
Canada:
Trump doubled his initial 25 per cent tariff proposal on Canadian steel and aluminium after Ontario Premier Doug Ford countered by charging 25 per cent more for the electricity his province provides to about 1.5 million Americans in Minnesota, New York, and Michigan.
Ford, on the other hand, instructed Ontario’s Independent Electricity System to implement a $7-per-megawatt-per-hour fee on all power exports to the three US states.
Trump ignited a trade war with Canada and Mexico during his first days in office as part of a campaign promise to stop the flow of fentanyl and illegal immigrants into the United States.
He said both countries had not done enough to halt the drug flow and the mass influx of migrants from reaching US soil.
Mexico:
Mexico has managed to twice postpone Trump’s tariffs on Mexican goods.
On February 1, Trump signed an executive order to impose tariffs on imports from Canada, Mexico, and China.
But, on February 3, Trump agreed to pause the levies against Canada and Mexico after the countries took steps to appease Trump’s concerns on border security and drug trafficking.
Trump credited Mexican President Claudia Sheinbaum’s progress on border security and drug smuggling as a reason for the pause on the levies.
Still, Trump has maintained that on April 2 the US will begin imposing reciprocal tariffs on all its trading partners, including Mexico.
His plan is designed to protect US manufacturing and bolster job opportunities by making internationally made products more expensive and less attractive to buy.
It will also threaten to make the cost of many things such as cars more expensive.
On Tuesday, Trump again threatened Canada with historic financial punishment as they threatened to impose their own 25 per cent tariffs on electricity in three US states.
The brewing trade war between the two neighbouring countries deepened this week after Trump doubled the 25 per cent levy on Canadian steel and aluminium.
It came in response to the Ontario government’s threat of an electricity surcharge.
Published: [#item_custom_pubDate]
