Sir Keir Starmer has not ruled out countermeasures in response to the 25 per cent tariffs on steel and aluminium imports imposed by President Trump.
Speaking at prime minister’s questions, Starmer said he was “disappointed” by the move but would take a “pragmatic approach” to the White House. MPs told him he should be “more robust” with the president “like the Europeans and like the Canadians”. The European Union has announced it will impose €26 billion of counter-tariffs on American goods.
Starmer said the UK was “negotiating an economic deal which covers and will include tariffs if we succeed’. He added: “But we will keep all options on the table.”
James Murray, the exchequer secretary to the Treasury, earlier told Times Radio that ministers must remain “cool-headed”. He said Britain would not join the bloc’s effort and would instead push for an economic agreement between the UK and the US.
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Murray said: “We’re not going to retaliate immediately in that way. Obviously, the imposition of tariffs is disappointing, but we want to take a pragmatic approach and we’re already negotiating rapidly toward an economic agreement with the US with the potential to eliminate additional tariffs.
“We think that the best way for the UK to respond is with a cool-headed, pragmatic, productive response working with the US, but whilst at the same time making absolutely clear that we will stand up for British industry and all options are on the table.”
He added: “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.”
Trump’s increased tariffs took effect on Wednesday when prior exemptions, duty-free quotas and product exclusions expired. The duty is extended to hundreds of products made from the metals, from nuts and bolts to soda cans.
Murray said the imposition of the tariffs was “obviously disappointing” and suggested they went against “free and open trade”. He told Sky News it was key to recognise that the tariffs were global and have “landed right in the middle of our negotiations”.
The European Commission said that it would end the suspension of tariffs on US products on April 1 and would put forward a package of countermeasures on US goods by mid-April.
“The European Union must act to protect consumers and business,” Ursula von der Leyen, president of the European Commission, said. “The countermeasures we take today are strong but proportionate.”
The suspended tariffs apply to products from boats to bourbon to motorbikes, and the EU said it would start a two-week consultation to pick other product categories.
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The new measures will affect about €18 billion in goods, with the overall objective to ensure that the total value of the EU measures corresponds to the increased value of trade affected by the new US tariffs. The proposed targets include industrial and agricultural products, such as steel and aluminium, textiles, home appliances, plastics, poultry, beef, eggs, dairy, sugar and vegetables.
William Bain, head of trade policy at the British Chamber of Commerce, said: “This is a difficult day for transatlantic trade and plunges businesses, in both the US and UK, into a new age of uncertainty.”
Trump rattled investors’ confidence on Tuesday by announcing further trade levies on Canada, doubling his planned tariffs on all imports of steel and aluminium products to 50 per cent. He was responding to the province of Ontario placing a 25 per cent tariff on electricity coming into the US.
Anthony Albanese, the Australian prime minister, called Trump’s steel and aluminium tariffs “entirely unjustified . . . and against the spirit of our two nations’ enduring friendship” but ruled out tit-for-tat duties. He said: “Tariffs and escalating trade tensions are a form of economic self-harm, and a recipe for slower growth and higher inflation. They are paid by the consumers.”
Beijing said it would take all necessary measures to safeguard its rights and interests, while Japan’s chief cabinet secretary, Yoshimasa Hayashi, said the move could have a serious impact on economic ties between the US and Japan.
The countries most damaged by the tariffs are Canada, the biggest foreign supplier of steel and aluminium to the US, Brazil, Mexico and South Korea. In the past they all had exemptions or quotas.
