Trump’s steel tariffs ‘would seriously undermine’ UK’s ability to compete, trade body warns

'These measures would cause serious damage to the prospects of many steel producers here,' head of policy at UK Steel says

Donald Trump’s proposed introduction of steel tariffs would seriously undermine the UK’s ability to compete in the global market, the industry’s trade body has warned.

The US President on Thursday announced that, as of next week, his government intends to introduce a 25 per cent levy on imported steel and a 10 per cent levy on imported aluminium in a bid to protect domestic producers.

“Whilst we still await the precise detail of these measures, and there is still a lingering hope that these tariffs may not target the UK and EU, President Trump’s comments do indicate the introduction of blanket measures to restrict the import of all steel imports regardless of their origin,” said Richard Warren, head of policy at UK Steel, the trade body that represents all the country’s steelmakers and a large number of steel processors.

“This would be a unilateral, and extremely blunt, approach to what is a complex global problem of overcapacity in the steel sector,” he said.

He added that while UK Steel understands the frustrations of the US sector, “measures such as these smack of short-termism, protectionism and would be rife with unintended consequences for global trade and for the users of steel in the US”.

For the UK specifically, Mr Warren said, the measures “would seriously undermine our ability to compete in this market”.

He said that there is also “significant apprehension about the indirect impacts of these measures in the form of steel trade diverted away from the US to other markets, such as the UK”.

“In short, these measures would cause serious damage to the prospects of many steel producers here,” he said. He said UK Steel trusts that the “the UK Government would push for and fully support a robust response from the EU”.

Mr Trump’s move follows a decision in January by the US to impose tariffs of up to 50 per cent on imports of washing machines and solar panels from China and South Korea.

The US commerce secretary Wilbur Ross told the World Economic Forum in January that the US was “coming to the ramparts” to protect itself, in what he said was an already raging global trade war.

Mr Warren on Friday said that whilst the UK government has to “resist any urge to mirror such protectionist moves” it is important to be “clear-eyed” and the country needs to equip itself with tools to “respond effectively and protect our interests when necessary”.