The United Kingdom is intensifying its efforts to secure a trade deal with the United States following the implementation of metal tariffs by President Donald Trump. These tariffs, which impose a 25% duty on steel and aluminium imports, have sparked significant reactions from key trading partners, including the European Union, which announced plans to impose counter tariffs on a range of American goods.
Impact of tariffs on US businesses and consumers
As these tariffs take effect, American businesses importing steel and aluminium will face a substantial financial burden, likely resulting in increased prices for American consumers. The situation has raised concerns about potential adverse effects on economic growth, as US markets experienced a downturn amid fears of a recession.
In response to the tariffs, the European Union revealed that it would impose retaliatory tariffs on products worth €26 billion (£22 billion). These tariffs will be partially enforced on April 1 and fully implemented by April 13. European Commission President Ursula von der Leyen expressed her regret over the situation, stating, “Tariffs are bad for business and worse for consumers.” She emphasized the negative implications these tariffs have on supply chains and overall economic stability.
UK’s strategic response and industry concerns
In the UK, Business Secretary Jonathan Reynolds described the situation as “disappointing” but affirmed that the government is focused on a pragmatic approach while rapidly negotiating a trade deal with the US. He highlighted that the UK is collaborating with affected companies and is prepared to explore various options to protect its national interests.
Meanwhile, British Steel’s Director General Gareth Stace expressed disappointment, noting that some contracts have already been canceled or suspended due to the new tariffs. He highlighted the financial strain this could impose on US customers, who may incur an additional £100 million annually due to the tariffs.
“If I have higher prices, I pass them on to my customers. They have higher prices, they pass it on to the consumer,” said Michael DiMarino, a Brooklyn-based manufacturer.
Concerns over the broader economic impact of these tariffs have prompted discussions among various industry leaders and lobbying groups. The American Automotive Policy Council, representing major automotive manufacturers, echoed worries that the removal of exemptions for Canada and Mexico could lead to significant cost increases for car makers and their suppliers.
As stock markets reacted negatively to the prospect of economic repercussions, research firm Oxford Economics adjusted its US growth forecast for the year down from 2.4% to 2%. Despite this, the firm maintains expectations that the US economy will outperform other advanced economies over the coming years.