By Kate Holton
(Reuters) -Britain’s government said on Wednesday it was disappointed with President Donald Trump’s imposition of tariffs on steel and aluminium imports but did not follow the European Union in retaliating.
Britain had hoped to avoid tariffs on its steel sector, which is small but produces specialist products for defence and other industries. Trump said last month the two countries might reach a bilateral trade deal that would avert duties.
The British government had also said its provision of key goods for the U.S. defence, oil and gas and construction sectors meant it should be given a carve-out.
Trump imposed global tariffs of 25% on all imports of the steel and aluminium on Wednesday which he said would reorder global trade in favour of the United States.
The EU responded by saying it would impose counter-tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month.
“It’s disappointing the U.S. has today imposed global tariffs on steel and aluminium,” Britain’s business minister Jonathan Reynolds said.
“We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the U.S. to eliminate additional tariffs and to benefit UK businesses and our economy.”
A British official said on Tuesday the government would not impose retaliatory trade tariffs on the United States and focus instead on trying to secure an exemption.
The head of the British steel trade body, UK Steel, questioned whether Trump realised Britain was an “ally, not a foe”.
“Our steel sector is not a threat to the U.S., but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade,” Director General Gareth Stace said.
Steel UK said the U.S. was Britain’s second most important export market for steel after the EU, accounting for 9% of UK steel exports by value and 7% by volume.
Reynolds said the government was working with companies impacted by the measures and would investigate what further steps might be needed to protect UK producers.
Trump’s increased tariffs on steel and aluminium imports took effect on Wednesday as prior exemptions, duty-free quotas and product exclusions expired.
(Reporting by Kate Holton in London and Gnaneshwar Rajan in Bengaluru; Editing by Jacqueline Wong, Lincoln Feast and Christina Fincher)
