The British government has not ruled out imposing its own tariffs on the United States after President Trump’s decision to levy a 25 per cent duty on steel and aluminium imports. James Murray, Exchequer Secretary to the Treasury, stressed that Britain must remain “cool-headed,” yet warned that “all options are on the table.”
In contrast to the EU’s move to implement €26 billion of countermeasures against American goods, Britain is withholding immediate retaliation while focusing on negotiations towards a UK-US economic agreement. “Obviously, the imposition of tariffs is disappointing,” Murray told Times Radio. “We want a pragmatic approach . . . but we will stand up for British industry if needed.”
Trump’s increased tariffs took effect on Wednesday, extending beyond basic steel and aluminium to hundreds of derivative products, ranging from building bolts to drinks cans. Exemptions and duty-free quotas that previously applied to several international partners have now expired.
The European Commission has vowed to end its suspension of tariffs on US goods from 1 April, launching a new package of countermeasures by mid-April. Targeted products, worth an estimated €18 billion, could include everything from steel and aluminium to textiles, poultry and dairy. Ursula von der Leyen, the Commission President, emphasised the need to “act to protect consumers and business,” calling the tariffs “strong but proportionate.”
William Bain, head of trade policy at the British Chamber of Commerce, described the situation as “a difficult day for trans-Atlantic trade,” cautioning that it plunges British and American businesses into heightened uncertainty.
President Trump rattled market confidence further by announcing fresh levies on Canadian imports, doubling planned tariffs for steel and aluminium to 50 per cent, after Ontario imposed a 25 per cent tariff on electricity entering the US. The Canadian market is the single largest foreign supplier of US steel and aluminium, and it joins Brazil, Mexico and South Korea in losing key exemptions or quota arrangements.
Australia also voiced its displeasure, with Prime Minister Anthony Albanese calling the US tariffs “entirely unjustified” but ruling out tit-for-tat duties, noting that “tariffs and escalating trade tensions are a form of economic self-harm.” Meanwhile, China vowed “all necessary measures to safeguard its rights and interests,” and Japanese Chief Cabinet Secretary Yoshimasa Hayashi warned of major repercussions for US-Japan economic ties.
Against this backdrop, Britain’s efforts to negotiate a new economic pact with the US aim to preserve vital trade flows without resorting to a swift retaliatory response. Nevertheless, Murray underlined the government’s readiness to protect UK industry: “We reserve our right to retaliate . . . Failing to do so would risk the wellbeing of British businesses and the wider economy.”
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.