The UK is in talks with the US to negotiate a trade deal with the US as US President Donald Trump’s tariffs on steel and aluminium take effect.
The new tariffs have prompted the European Union to respond quickly, saying it will impose retaliatory tariffs on US goods. The UK has not yet imposed any tariffs, but is seeking a broader economic deal with the US.
Trump says the tariffs will boost domestic steel and aluminium production. But critics fear they will increase costs for US consumers and have a negative impact on the overall economy. US stock markets have already fallen.
Trump has also decided to double tariffs on Canada, particularly in response to the Ontario government’s electricity surcharge. This will mean US businesses will have to pay a 25% tax on steel and aluminium imports.
The European Union has announced retaliatory tariffs on €26 billion worth of US goods, which will be phased in. EU President Ursula von der Leyen called the tariffs “bad for business and worse for consumers”. She added that the EU was ready to negotiate but that its response would be “strong but proportionate”.
UK Business Secretary Jonathan Reynolds described the decision to impose tariffs as “disappointing”, but said the UK was focused on a pragmatic approach. It was continuing talks with the US on a broader economic deal as soon as possible.
The American Iron and Steel Institute (AISI), a US steelmaker, welcomed Trump’s tariffs, saying they would create jobs and boost domestic production. However, British steel industry leader Gareth Stace called the decision “deeply disappointing” and said it would have a negative impact on British businesses.
Other countries have also criticised the tariffs. Australian Prime Minister Anthony Albanese called it “completely unreasonable” and said Australia would not impose retaliatory tariffs because it would be detrimental to its own market. Canada, on the other hand, has announced retaliatory measures, although it does not want to escalate tensions.
Representatives of the US automobile industry have opposed the tariffs, saying they would increase production costs and create economic instability. Traders fear that the tariffs will lead to higher prices, which will ultimately affect consumers.
Thus, Trump’s tariff policy has caused global tensions and raised fears of a trade war.